In the world of business, referrals are a crucial source of growth. Whether you’re a consultant, a service provider, or a business owner, the right referral can significantly expand your network and customer base. However, encouraging and maintaining a steady flow of quality referrals requires more than simply doing good work. It involves building strong relationships with your referral sources and motivating them to make introductions for you..
Referral sources like John in this example can connect professionals like George with prospects like Paul. To ensure that these connections are frequent, reliable, and high-quality, it’s essential to keep the referral source motivated. This article outlines ten effective ways to encourage your referral sources to keep the introductions and recommendations coming while improving the quality of their referrals.
Let’s assume John is the referral source, Paul is the referral/prospect, and George (the professional) is the referral recipient.
George (referral recipient/professional) wants John (referral source) to introduce Paul who is a highly qualified referral/prospect; someone who wants and needs George’s products/services and has the resources to pay for those products or services. What could motivate John to send better introductions and referrals to George?
George (referral recipient/professional) wants John (referral source) to introduce George to a lot of prospective clients like Paul (referral/prospect). George would rather have more referrals from John rather than less. What could motivate John to send more introductions and referrals to George?
George (referral recipient/professional) wants John (referral source) to introduce George to prospective clients like Paul (referral/prospect) faster. George would rather have referrals from John sooner rather than later. What could motivate John to send introductions and referrals faster to George?
George (referral recipient/professional) wants John (referral source) to introduce George to prospective clients like Paul (referral/prospect) in a robust and thoughtful way. George would rather have referrals from John with greater skill, detail, influence, and likelihood of success rather than less. What could motivate John to make the introductions and referrals in a better way for George?
For professionals and organizations who depend on referrals to expand their customers, cultivating good relationships with referral sources is crucial. Referral sources, like John in this instance, can help match up experts like George (referral recipient/professional) with possible customers like Paul (referral/prospect). However, deliberate incentives and involvement are needed to keep the flow of recommendations steady. George wants John to be proactive when possible and reactive whenever the opportunity to refer is available. George wants John to send great people, often, soon, and in a meaningful tailored way.
These are ten essential tactics that experts can employ to successfully encourage referral sources.
- Reciprocate
George (referral recipient / professional) can motivate John (referral source) to provide more referrals to George. George can reciprocate and send referrals to prospective clients to John. George can also influence Paul (referral/prospect) who was originally introduced to George by John, to have Paul send referrals to John.
Reciprocating referrals is one of the best strategies to inspire John, the source of the referrals. A mutually advantageous connection is formed if George, the beneficiary of the referral, offers business prospects back to John. For example, George can repay John for his referral of Paul, a potential client, by introducing John to other prospective clients in the future.
George (referral recipient/professional) can also influence Paul, the person originally sent to George by John (referral source) to also send referrals to John. Whereas most professionals do think about the back-and-forth exchange of referrals with their best referral sources, they do not as often think about how they influence others to send referrals too. If every time John sends a new prospect over to George, George influences that prospect to send to John a referral, then John will be much more motivated to send more people to George.
This comprehensive reciprocity cycle fortifies the professional relationship and promotes continued referrals. If George (referral recipient/professional) ensures that the relationship isn’t one-sided, John (referral source) will see that referrals flow both ways and he is more likely to continue referring.
- Introduce
John (referral source) could get introductions to referral sources from George (referral recipient/professional). John could get introductions to referral sources from Paul (referral/prospect).
Networking is an effective technique, and George (referral recipient/professional) can keep John (referral source) interested and motivated by providing insightful introductions. By introducing John to fresh referral sources who can refer prospects to John, George can help John grow his network. In a similar vein, George might influence Paul (referral/prospect) to make additional professional connections for John by introducing John to others in Paul’s network.
An example or analogy here may help to clarify the difference between what “reciprocate” would mean in number 1 on our list, and what “introduce” would mean here in number 2 on our list.
If you wanted to reciprocate and send a good prospective client to an orthodontist, you would refer a person with crooked teeth to the orthodontist. That person would be a good prospective patient for the orthodontist who could be paid to straighten the person’s teeth.
If you wanted to make a good professional introduction for the orthodontist, you could introduce the orthodontist to a dentist. Even if the dentist has straight teeth, they could still be a great introduction for the orthodontist since the dentist is looking at teeth all day and can refer people with crooked teeth to the orthodontist often.
A metaphor that can also be helpful is “the goose that lays the golden egg.” If you can’t lay a golden egg for someone by referring them to a great prospect, you could at least try to introduce them to another goose.
Facilitating introductions to new contacts is a thoughtful way to keep referral sources like John (referral source) excited about their relationship. It will keep George (referral recipient/professional) top of mind and make it more likely that John will send more referrals to George.
- Invite
John (referral source) could get invitations to groups or events from George (referral recipient/professional). John could get invitations to groups or events from Paul (referral/prospect).
John (referral source) can be greatly motivated by invitations to professional gatherings, events, or private groups. John might increase his business network by accepting to industry-specific seminars, networking groups, panel discussions, conferences, or client appreciation events from George (referral recipient/professional). George may also influence Paul (referral/prospect) to extend an invitation to John to pertinent gatherings within Paul’s personal or business networks.
Offering invitations helps John (referral source) feel included in a broader professional community. This not only adds value to his own business efforts but also strengthens the relationship between him and George (referral recipient/professional) or Paul (referral/prospect).
- Pay
George (referral recipient/professional) could pay John (referral source) money for making a referral to Paul (referral/prospect).
Receiving money in exchange for more recommendations can be a very effective motivator. For each client that John (referral source) successfully refers to George (referral recipient/professional), George could give John a commission or referral fee.
Of course, George (referral recipient/professional) will need to meet the disclosure or prohibition standards that the law and his professional standards require if or when paying referral fees. If not, George’s or John’s professional licenses or reputation will be at risk. Attorney’s, for example, have fiduciary standards to meet and therefore have complex rules about disclosures in order to financially reward the referral source, prohibitions from referral fees, and even requirements to co-counsel the matter. When in doubt, contact an expert in your field’s professional standards to meet the standard required.
Beyond that, George (referral recipient/professional) can establish a clear and fair payment structure for referrals when appropriate. Compensation can be a direct motivator and demonstrate that George values John’s efforts.
- Hire
George (referral recipient/professional) could pay John (referral source) money for John’s products/services. George could influence Paul (referral/prospect) to pay John (referral source) for John’s products/services.
Hiring John (referral source) for his own goods or services is an additional option to motivate him to send additional referrals. If George (referral recipient/professional) will use John’s services it can generate even more reciprocity. George may hire John, for instance, if he owns a marketing company, to handle his marketing requirements. Likewise, George can influence Paul (referral/prospect) to pay John for products or services, strengthening the bond between George and John even further.
Hiring John (referral source) for his services is a tangible way to show appreciation and create a business relationship that benefits both parties. This solidifies loyalty and encourages future referrals from John.
- Advise
George (referral recipient/professional) could give John (referral source) free information or advice. George can influence Paul (referral/prospect) to give John (referral source) free information or advice.
Giving John (referral source) useful knowledge or counsel at no cost is another method to inspire him. George, the professional, can provide strategic advice if his area of expertise is one that John could find useful. George might provide advice on client acquisition or business management, for example. Paul is a potential client who might also be able to provide John with insightful industry information or advice on some new tool or technique.
The advice provided could also be personal. George (referral recipient/professional), for example, might be an avid runner who could give John (referral source) advice about how to train for his first marathon.
Offering advice and knowledge can be valuable and motivating. John (referral source) would appreciate the support, which could lead to a stronger referral relationship.
- Reward
George (referral recipient/professional) could give John (referral source) prizes, gifts, meals, or entertainment. Paul (referral/prospect) could give John (referral source) prizes, gifts, meals, or entertainment.
Individual prizes may work well as a motivator. George (referral recipient/professional) may thank John (referral source) for his referrals by giving him presents or dinners. These incentives don’t have to be costly; but, kind gestures like a special supper, tickets to an event, or a handwritten note with a small present can make a big difference. John may receive comparable benefits from Paul, the potential client, for his referral-making efforts. If George can take the time to find out about interests, hobbies, collectibles, or possessions that are meaningful to John, George can make these gestures even more personalized and impactful. A baseball jersey for a football fanatic would not be the best gift.
Rewarding John (referral source) with thoughtful tokens of appreciation can help maintain a positive and ongoing referral relationship. Personal touches can make a significant difference in motivation.
- Vouch
George (referral recipient/professional) could enhance John’s (referral source) reputation. Paul (referral/prospect) could enhance John’s reputation.
Increasing John’s (referral source) reputation is a powerful incentive. George (referral recipient/professional) can attest to John’s legitimacy by offering references, testimonials, compliments, or open recognition of his abilities and experience. George could say these things about John to just one person, an event full of people, in a circle of people at a cocktail hour, or on a professional review site, like Avvo.com for attorneys or Angie’s List for home repair professionals. Google reviews, Linkedin reviews, or a written testimonial John could add to his website are all ways George could influence and motivate John to send George more referrals.
In a similar vein, Paul (referral/prospect) might promote John (referral source) favorably on social media or in professional settings, which would improve John’s standing. If John knows that George (referral recipient/professional) was influential in getting Paul to make those testimonials for John, that could motivate John to send more referrals to George.
Publicly vouching for John’s (referral source) expertise and reliability can help build his credibility and make him more likely to continue sending referrals. Reputation-building is a highly motivating factor for most professionals.
- Appreciate
George (referral recipient/professional) could provide sympathy, empathy, kindness, patience, love, affection, appreciation, thanks, or friendship to John (referral source) to motivate John to send more referrals to George. George could also influence Paul (referral/prospect) to provide more of the same to John.
A sincere statement of gratitude might occasionally serve as a strong incentive. George (referral recipient/professional) might establish a deeper and wider relationship by expressing gratitude for John’s (referral source) friendship. This could be expressed verbally, through a thank-you note, or by a friendly gesture. Paul (referral/prospect) is also able to show his gratitude and can transform the business relationship into a more intimate and encouraging one. If John knows George is influencing Paul to be more appreciative, that could motivate John to send more referrals to George.
Never underestimate the power of sincere appreciation. A heartfelt thank-you or taking the time to ask questions about someone’s strengths, goals, and concerns in life beyond work can be an enduring motivator for continued referrals.
- Respect
George (referral recipient/professional) may help John (referral source) feel or think the way he wants to feel by respecting his personality style. George can also encourage Paul (referral/prospect) to help John feel or think the way he wants.
Based on John’s (referral source) personality style he may want to feel or think a certain way:
An Amiable is generally Slow and Warm and has a core need to feel safe from negative feelings like sadness, anger, and fear. George (referral recipient/professional) can show respect for an Amiable John (referral source) by providing comfort, protection, and warmth.
An Expressive is generally Fast and Warm and has a core need to feel understood, recognized, complimented, and unique. George (referral recipient/professional) can show respect for an Expressive John (referral source) by fast discussions about relationships, people, and especially by complimenting John’s unique strengths.
An Analytic is generally Slow and Cool and has a core need to think they made the correct decisions by taking their time, weighing all the facts, and getting to the right outcome. George (referral recipient/professional) can show respect for an Analytic John (referral source) by slowing the pace of discussions, providing correct facts and details, allowing John his sweet time to come to his own conclusions, and providing verification that John was right about his decisions.
A Driver is generally Fast and Cool and generally wants to think they are in control of situations and people. George (referral recipient/professional) can show respect for John (referral source) as a Driver by moving the pace of discussions forward, providing facts useful information that will help John get ahead, and conceding to John’s authority and influence.
By respecting John’s (referral source) personality style, George (referral recipient/professional) and Paul (referral/prospect) can tailor their interactions to make John feel valued in the way that matters most to him. For instance, a “Driver” personality might appreciate clear, no-nonsense communication and results, while an “Amiable” personality might value a warmer personal connection.
To motivate John effectively, tailor the approach to align with his personality type. This shows respect for his preferences and increases the likelihood of continued collaboration.
Summary
To sum up, it takes a combination of reciprocity, respect, and understanding to motivate referral sources like John. First, seek to understand John, his personality style, strengths, goals, concerns and through that George can understand his motivation to refer. Learn about John’s perceptions, experiences, and beliefs when it comes to giving and getting referrals. With this information, George can motivate John through monetary incentives, meaningful connections, or kind deeds to establish a mutually beneficial environment that keeps relationships strong and referrals coming in.
