Business Networking and Referral Marketing

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Business Networking and Referral Marketing

• Presented by
• Martinsville-Henry County Economic Development
  Corporations
• Office of Small Minority Business Development

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What is Referral Marketing?

• When starting your business, where did your first
  clients come from?
• Did people already know you and trust you because
  of your prior business with them?
• Did you use your network of contacts to gain
  business for you company?
• If yes, then you are referral marketing.

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Network of Contacts

• Collection of social capital that you accumulate
  everyday!!!
• Family, friends, business associates, suppliers,
  members of your social groups, Church groups,
  neighbors, Chambers of Commerce, networking
  groups (like Lisas!), etc.
• In-Rolodex Selling.
• Metcalfes Law The value of a network is
  directly proportional to the square of the number
  of its connections.

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Getting Quality Referrals

• Requires you to plan and organize your contacts
  into manageable parts.
• Not all contacts will be equally profitable (e.g.
  Family Members and Friends!).
• Prioritizing and targeting your best contacts
  within your network is a useful investment of
  your time.
• Five step process.

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Step One Identify and Prioritize

• Order your contacts
• People in your current Contact Sphere.
• Satisfied Clients and Customers.
• People whose business benefits from yours.
• People with who you do business.
• Business co-workers, present and former.
• Members of business groups you belong to.
• Fellow members of social and religious
  organizations.
• Family, friends, teachers, mentors and coaches.

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Step Two Identify Patterns and Break Down into
Subcategories

• Notice the patterns that develop expose the
  strengths and weaknesses of your network.
• The quality of this list is in direct proportion
  to your current networking skills.
• Break the list down into three sub-categories
• Your Information Network Those people who can
  help you with knowledge, experience, and
  expertise.
• Your Support Network Those people who can offer
  emotional, physical, spiritual, and financial
  support.
• Your Referral Network These are people who have
  the resources and connections to pass you
  potential referrals.
• From this list, focus on customizing your network
  to your market.

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Step 3 Determine Your Contact Sphere

• To determine your Contact Sphere
• Look at sources readily available to you
  (Rolodex, daily planner, PDA, etc.).
• Look at your supplier list.
• Make contact with the professionals you listed in
  Step 2.
• Establish a reciprocal relationship with the
  businesses that have a best fit with yours.
  Compatible but noncompetitive.
• Offer bird dog fees when appropriate.
  Formalized referral.
• Become a Referral Hub. A Referral Hub is
  someone who has an extensive resource list of
  referrals and shares them generously. This takes
  time and a deep conviction to becoming an
  exceptional referral marketer.
• Its not who you know, but rather, its who they
  know. You have no idea what your network can
  offer until you start making the connections in a
  formalized manner.
• 6 degrees of separation (or in Martinsville 1)!!!

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Step 4 Establish a Contact System

• Select your referral partners.
• Recruit your perspective referral partners.
• Educate your new referral partners.
• Give your referral partners the tools to take
  action.
• Initiate contact with prospects your referral
  partners give you.
• Reward you referral partners.

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Step 5 Expand and Diversify Network

• This is also known as filling the gaps.
• Look through Steps 1-4 and identify areas where
  you need to make contact but do not have the
  network.
• Fill the gaps through
• Existing contacts/referral partners.
• Trade Associations.
• Chambers of Commerce.
• Informal Networking Groups (Lisa!!!).
• Professional Networking Groups.
• Make sure any professional networking group
  restricts access through non-competitive
  membership.

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Activities

• Handshake, eye contact, and elevator pitch.
• Be shameless. Wallflowers do not close deals.
• Ask for forgiveness and not permission.
• Listen, listen, listen and identify the pain.
• Get personal (Kids? Pets? Wedding ring? Need a
  date?). Look for hidden clues.
• Be personable. Personality gets a 2nd meeting.
• Get the business card.
• Follow-up.

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Fill Out The Form!!!

• Contact 1
• Name
• Company
• Contact info
• Products/Services
• Personal info
• Contact 2
• Name
• Company
• Contact info
• Products/Services
• Personal info

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Business Cards in the Fishbowl Trick

• Drawing for the prize.
• THANK YOU!!!!