Creating A Referral Machine 5 of 7

Establishing relationships is an important first step. In so doing, you have built a network of people who are really behind you. Again, they know, like and trust you. This alone does not create a referral machine, however. Before your network can refer you, they need to be empowered. Empowered to recognize opportunities for you as well as empowered to talk or communicate about you.

People within your network do not magically know how to refer you. First, they need to know who to refer you to and they need to know when to refer you. To make this happen, it is entirely up to you to empower them to recognize these opportunities.

Consider franchise brokerage (though this applies to any business or profession). Certainly if someone comes out and says, “I am looking to buy a franchise”, your network should know to think of and refer you. But what about all the times that someone could be a great client but does not say they are looking to buy a franchise (or they do not even know that franchise ownership is an option)?

EXAMPLES:

  • What about the person whose spouse is looking to have their own business?
  • What about the displaced executive who might not be interested in getting back into the grind?
  • What about the mid-level manager that wants a way out of the grind?

If you want to create a referral machine, it is your job to paint a picture in the minds of your network as to who is a good referral candidate and what is a good situation. Here are three great ways to do this.

(1) Develop a series of short 30-second commercials that concisely convey what you are looking for and what you do. Again, develop a series, so that you have a varied message. Write these out and practice them, then use them as often as possible. For help on this find the short series on 30-second commercials.

(2) Even if you have a great 30-second commercial, people are not going to fully remember what you have to say. To overcome this, develop (again) a series of short summaries outlining what you are looking for. Make these short and simple (so simple that a 5th grader could understand them). Then neatly type and print them out (or even have them professionally printed) so you can quickly and easily hand them out, mail, or e-mail them to your network.

(3) If you give people the basic facts, they might politely listen. But if you weave these facts within a compelling story, example or analogy, they will be enthralled by what you have to say. If you have experiences, share them. If you do not have experiences, then talk to someone who does and borrow theirs. If you have neither experience nor access to someone who does, make it up. In this situation, it is not stealing to make someone else’s experiences your own. It is not lying to craft a story that has not occurred. You are doing this to paint a picture of what a good referral looks like.

In Part 6, we will address empowering your referral machine.

Creating A Referral Machine 4 of 7

Okay, there are lots of potential people with whom to establish a relationship. What about the “HOW”? How can you make this happen?

Yes, there are lots of people. That is generally not the problem. That is seldom people’s shortcoming in creating a referral machine. It is the “how” that trips people up.

In establishing relationships, there are three main categories of activities you need to consider making part of your personal regimen. (1) Giving or adding value to others; (2) Ensuring that you become involved; and (3) Making sure that you are dependable or reliable in what you say and do.

First, when people hear the term “GIVING TO OTHERS”, they tend to conjure up images of dragging out their wallets. That is not the case at all. There are lots of things you can do in giving or adding value to others.

  • Doing business with others.
  • Sending them referrals.
  • Providing them with information.
  • Spurring them on.  
  • Introducing them to others.

Each of these things adds value to others. The key part of all of this, however, is that when you add value to others, they cannot help but feel they know you, like you, and trust you. And somehow, they are quietly compelled to return the deed at some point in time.

Second, another means of establishing relationships is getting involved with your community.

Trust this, no matter where you live there are business groups, charities and civic initiatives that could use your time, talent and energy. When you get involved in your community, it raises your level of exposure and it demonstrates your commitment. With these things, people cannot help but feel they know you, like you and trust you, which is exactly what you need to start establishing relationships and to create a referral machine.

Finally, adding value and getting involved are great for establishing relationships. You, however, will undermine the entire process if you are not reliable. With even an innocent infraction of unreliability, you can kill your chances of getting referrals. Be reliable … be on timedo what you sayfollow-up, as you promise. And if for some reason you are unable to do these things, alert the person who might be relying on you as soon as possible.

This may all seem like common sense. It is. However, it is not common practice. It has tripped up even those with the best of intentions. Guard against this.

Nevertheless, once you have these relationships established, you can start to put your referral machine to work. That is the subject of Part 5.

Creating A Referral Machine 3 of 7

The important first step to creating a referral machine is establishing relationships. This all begs two important questions: (1) WITH WHOM should I establish these relationships? And then even more importantly, (2) HOW do I go about establishing these relationships?

As to with whom you should establish relationships, there is no magic or secrets. They are all around you. First, start with the people you already know. Why? The people you already know, presumably already know, like and trust you. Far too often, when people embark on creating a referral machine, they become fixated on people they have never met before.

Think about it. You know tons of people right now – friends from the community or school, former colleagues, existing or past clients. This represents a treasure trove of raw materials with which to work.

Second, develop a list of strategic partners. Ask yourself this – who are the people that do not compete with you, but who run in the circles where you would like to be running? What is the profile of a good potential client for you and who might be servicing them?

Third, everyone is connected. Everyone knows someone who might be a good potential referral for you (although they may not realize it). This is not to say that you need to establish a relationship with everyone. What it does say, though, is do not dismiss anyone. Give everyone attention and respect.

As to HOW, we cover that in Part 4.

Creating A Referral Machine 2 of 7

Just because you want this referral machine does not mean that you get it. You have to build it using a three-step process to do so. 

  1. You start by establishing relationships.
  2. Then within those relationships (which is essentially a network of people), you empower them to not just understand what you do, but how to talk about it.
  3. Finally, you remain in continual contact to appropriately guide and re-adjust the process. Yes, this takes work, but in the end the rewards far outpace the effort.

The foundation on which you will create a referral machine is the relationships you have with others. This is the most important point: people do business with and refer business to those that they know, like and trust. Those who get the most and best referrals are simply those who have the best relationships. They are widely known, highly liked, and implicitly trusted.

We will cover this process in greater detail starting in Part 3.

Networking And Stone Soup

In the tale, Stone Soup, stingy villagers have no interest in sharing their food with anyone but their own.  

However, when a peddler offers to share some stone soup with them (essentially rocks in a pot of boiling water), one by one, the villagers begin to share – a head of cabbage here, some salt beef there – and before long a pot of delicious “stone” soup awaits them.

This tale suggests that generosity and altruism are contagious. Nicholas A. Christakis, M.D., Ph.D. and James H. Fowler, Ph.D tested this assertion and shared their results in their book Connected.

120 students were put into groups of four. Each group member was given some money to perform a series of tasks. Members both profited and lost in this capitalistic exercise. Afterward, members had the option of giving some funds to others at their own expense.

The exercise was repeated, with different group configurations. In the first few rounds, no money was gifted.

Unbeknownst to the participants, one of them was a plant — someone in on the experiment. This person was the “Stone Soup Peddler.” At some point, the Stone Soup Peddler started to give away some of his money to others.

In the exercises that followed this exhibition of generosity, the people who benefited from the gift gave more. Even people who had only witnessed the gifting began giving more. These altruistic gestures began to spread through the group.

In business, you depend on others giving to you. You look for people to give you information, and to share referrals, insights, and ideas with you.

But people don’t just give; they are somehow moved and inspired to do so.

As the tale and the study illustrate, you have the power to inspire generosity through your own generosity. Any simple gesture can be contagious – a simple referral, an introduction, or just sharing valuable information. This will inspire your network to give to you and to others.

The Power Of Flocking

The United Kingdom has had a longstanding milk distribution system. Milkmen in small trucks bring the milk in bottles to each country house.  Early in the 20th century, these bottles had no top, giving birds easy access to the cream on top. 

The titmice and the robins capitalized most on this opportunity, quickly learning to siphon off the cream from the bottles.

In the 1940’s dairies began to install aluminum seals on milk bottles, effectively preventing the birds from gaining access.

This worked for a while but one by one, the titmice learned to pierce the tops and before long, the entire titmouse population was only mildly inconvenienced by the aluminum caps.

Other than an occasional few, the robins as a species never learned how to get around the bottle cap and were foiled (no pun intended) from getting at the milky cream.

Why? After all, robins and titmice are similar in size and physical characteristics. The difference was in how the birds interacted within their own species.

Robins are individualistic, self-serving and territorial birds. Rather than cooperate, they chase each other off when approached.

Titmice, on the other hand, are communal birds, relying heavily on other titmice for survival. Through this mutual dependency, they cooperate and collaborate, quickly learning from each other and adapting accordingly.

In short, the titmice won the battle against the aluminum caps because they learned from one another, while the self-serving robins, unwilling to share information, found themselves denied access to the sweet cream.

The lesson here is simple: Birds that flock, like titmice, learn faster, evolve more quickly, and increase their chances of survival. This is true for you as well.  When you interact with others, you learn – new information, new techniques, and new ways of helping others succeed.

So, in short, build a network of titmice, not robins.

Network Pyramid Capstones

In the 1960s, Harvard social psychologist Stanley Milgram studied what he termed the “small world” problem. He wanted to better understand how people were connected to one another.

So, he sent to 160 randomly selected people in Omaha, NE a packet with the name and address of a stockbroker from Boston. He instructed each individual to write their name on the roster in the packet, then mail it to someone they thought would get it closer to the stockbroker.

On average the packets reached the broker in six steps (thus the phrase “six degrees of separation”). Milgram initially reasoned that if the packets started from 160 random points, they would arrive at their destination with similar randomness. Many of the packets, however, followed the same asymmetrical pattern.  Half of the responses that got to the stockbroker were delivered by three people. So, the phrase “six degrees of separation” doesn’t mean that everyone is linked to everyone else in just six steps.  It means that a very small number of people are linked to everyone else in a few steps, and the rest of us are linked to the world through those few.

Try this. Write down the names of 40 friends and trace them back to how they were introduced to you. This will reveal that what people term as their “social circles” are really inverted pyramids. A large percentage of your contacts likely originated from relatively few individuals – your Network Pyramid Capstones.

Consider this – to “jump start” your network or determine where your time is best spent, find your Network Pyramid Capstones. Then reconnect with each over lunch, coffee, or whatever. 

Make an effort to develop a great relationship with these people – find ways to help them and be sure they understand how they can help you. These individuals have been instrumental in building your network to this point and will likely do so in the future.

Networking Is Nothing New

Networking is simply human interaction and it has been with us since the beginning of time. These human interactions are really just the relationships we have with one another. How we connect. Some connections are passing. Some connections are more lasting. Some connections are seemingly lifelong.

Given this, networking is, more or less, really just human behavior. Talking. Listening. Understanding. Being empathetic, encouraging, inspiring, smiling, laughing, and being a friend. Thus, all human behaviors involving other people are relationship-based and is networking.

The wonderful thing about human behavior is that there are patterns to it. While the patterns may not be perfectly predictable – as you might find with a chemical reaction or a physics experiment – there are patterns generally there.

Whenever there are patterns, however, there is curiosity. And whenever there is curiosity, you will find people of science trying to explain the patterns through studying, observing, and examining them.

Human behavior involving our relationships is no different. The social sciences – sociology, psychology, and economics, just to name a few – for years have examined how humans relate to one another, both personally and professionally.

30-Second Commercial 7 of 8

An effective 30-second commercial is good but having more than one is better. You have a lot to offer and it won’t all fit in one commercial.

No two people are the same and no two situations are the same. Thus, it only stands to reason that you have different messages to fit different situations and people.

Plus, if you consistently say the same thing, it eventually becomes “white noise.” Don’t fall into the “one size fits all” trap. Consider the following:

  1. Develop a variety of Message Bodies – some informative or educational, others flippant or amusing, still others something with a little shock value (where you really want to grab some attention quickly).
  2. Vary the reason WHY people should refer you. What information about you or your company will instill confidence and boost your credibility? What makes you uniquely qualified or sets you apart?
  3. Vary the request. In some settings you can outright ask for people to refer you clients. In others, ask for a connection to a strategic partner (an accountant or attorney, perhaps). Or maybe you need to ask for information (such as details on networking events, job transition groups or background on people).

To summarize, make your 30-second commercials effective by having different Message Bodies, relying on different things to establish Confidence, and altering the Request.

The order in which you present this information can vary. The above framework is a suggested guide. It is not an ironclad rule of thumb. Lead with something to inspire confidence or, perhaps, your strong definite request, or even an amusing message body.

It does not matter how you slice or dice the framework. The key is conveying the message with all the bits and pieces in about 30 seconds.

262) Network Building From 1,000 Acts

In China for the better part of a 1,000 years, the government practiced a form of torture known as “Death From A Thousand Cuts.” Under this form of execution, the convicted person was not killed mercifully. Rather the villain was executed by a series of daily small incisions. These collectively over time spelled doom for the condemned.

Establishing a strong network is truly the reverse of this. You successfully build a network by consistently performing literally thousands of small and seemingly insignificant acts.

You flash a big, happy smile thousands of times. You perform thousands of kind acts. You exhibit reliability with unfailing consistency thousands of times. No one smile, or single kind act, or individual demonstration of dependability has any significance in and of itself. Collectively, however, they have an immense power to build your network.

Knowing that it takes thousands of insignificant acts to build a great network, continually ask yourself, “What seemingly, meaningless network building act am I doing right now?”


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