Four Easy Ways to Double the Effectiveness of Your Referral Network

Four Easy Ways to Double the Effectiveness of Your Referral Network

SMBs – Small and Medium Businesses – depend upon referrals, in fact Constant Contact did a study and 82% of the small business owners surveyed said their primary source of growth comes from referrals. Brian Tracy, one of the top business strategists and trainers, once said only 1 or 2 out of every 100 connections will play a role in your business growth. The conclusions… 1) you need to build a Referral Network and 2) you don’t know which connections will deliver business growth through referrals.

If Your Business Growth Depends on Referrals; You Must Have a Strong Referral Network

To survive, your business must continue to grow; referrals from current customers, prospects, family, friends and contacts are integral to the process. So here are the “Three Easy Ways to Double the Effectiveness of Your Referral Network.”

  1. Build Your Network – You never know who will provide your next referral;
  2. Establish Your Credibility – If your referral network doesn’t find you credible; they will not refer people to you;
  3. Explain Your Value Proposition – Your network must understand, not just know, the value you bring; and you must
  4. Keep Yourself in Front of Your Referral Network – You must be Top-O-Mind with your network so they think of you when opportunities develop.

Build Your Referral Network

Building your Referral Network is critical to your growth. You need new people coming in who can promote you, your products and your services. It is true you never know who will provide your next referral, but if you build with the “right” connections you can improve your chances for good referrals. Identify the type of individuals you need in your network so you can target those who have the best potential to bring your referrals.

Your Referral Network Must Find You Credible

If you want your network to refer you to potential customers they must find you credible! If you cannot establish your credibility with your Referral Network; it’s a lost cause.

When someone refers you they are putting their reputation on the line along with yours. If the members of their Referral Network listen to them; they have established credibility within their network and a bad referral could damage their credibility so they must be careful! They are not going to be willing to put their own reputation and credibility at risk for someone they do not know!

You must be credible!

Explain Your Value Proposition to Your Referral Network

Your Referral Network must understand the value you bring. Many people try to do this by listing their skills and, in all honesty, this doesn’t work. When people hear a list of skills, at best, they will remember a few and probably with little accuracy. What you want is to tell your audience stories about the things you have done. If you are talking about skills; explain them in a story. It is much easier to remember stories and easier to relate those stories to others. Stories also help with connecting the dots as opportunities are explained.

Stories also add to your credibility. Stories help things become real in the mind of the listener and they become more interested in your situation and helping you.

Keep Yourself in Front of Your Referral Network

The last thing you must do is keep yourself in front of your Referral Network. Stay in touch, keep them apprised of what you are doing; let them know about the projects where you are engaged or recently completed.

You also want to stay in front of your Referral Network by acknowledging the things they, their families, and their companies do; if you read about something positive, let them know. You also must acknowledge any events in their lives you know. If you know about birthdays and anniversaries wish them well or congratulations. If there is a job change, new venture, promotion or other event; send or post an acknowledgement.

If members of your network post something take a moment and click like or comment. This accomplishes two things 1)it acknowledges their activity and raises your credibility in the eyes of the individual and 2) if you are regular in the process it raises your credibility in the eyes of the other members of your Referral Network! You are in front of your network, not promoting anything of yours, but promoting your network members and their activities. People appreciate seeing you be positive and helpful to themselves and others.

There you have it Four Easy Ways to Double the Effectiveness of Your Referral Network: Build Your Network, Establish Your Credibility, Explain Your Value Proposition and Keep Yourself in Front of Your Referral Network!


My name is Tom Staskiewicz and my goal is to help everyone do a little better, get a little further and reach the success they are destined to achieve! Let me know what you think of my articles; are they helpful? If you like what I have to say; please follow my blog so you don’t miss any of my posts.

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