One of the main reasons people join a business networking group is to generate referrals and, ultimately, new business. However, simply attending a meeting, introducing yourself and exchanging contact details is unlikely to produce a consistent stream of opportunities. Successful referral networking depends upon building relationships with people who understand your business, know the type of customers you are looking for and, most importantly, trust you enough to recommend you to somebody else.
This is why business networking should be viewed as a long-term business development strategy rather than a quick way to generate sales. The strongest networks are built gradually, as members get to know one another, understand each other’s businesses and become confident about making introductions.
Make Sure People Understand What You Actually Do
It may sound obvious, but one of the biggest barriers to receiving referrals is that other people do not fully understand what your business does. This is particularly common when somebody offers several services or works within an industry that uses a great deal of specialist terminology.
Rather than trying to explain every aspect of your business during a networking meeting, concentrate on the problems you solve and the customers you typically help. An accountant, for example, could simply introduce themselves as an accountant, but it would be far more useful to explain that they work primarily with growing small businesses whose owners have reached the point where managing their own accounts is becoming difficult and time-consuming.
The more clearly you describe the situations in which somebody might need you, the easier it becomes for members of your network to recognise those situations when they encounter them.
Be Specific About the Referrals You Would Like
Asking a networking group for introductions to “anyone who needs my services” gives people very little to work with. Most of us encounter dozens of people every week, and a broad request is easily forgotten. A specific request, on the other hand, gives people something tangible to listen for.
A commercial photographer might explain that they would particularly like introductions to independent hotels that need new photography for their websites. A mortgage adviser could ask to meet landlords whose fixed-rate mortgage is approaching its end, while a web developer might be interested in established businesses whose websites are several years old and no longer generating sufficient enquiries.
You do not have to restrict your business to that particular type of customer. The purpose is simply to give your network a clear picture of a good referral for you. You can then change that request regularly as your priorities develop.
Give People Time to Trust You
When somebody recommends your business, they are putting a small part of their own reputation behind that recommendation. If the person they introduce receives poor service, it reflects upon them as well as you, so it is perfectly reasonable for people to want to know you before they begin referring their contacts.
This is one of the reasons why regular networking tends to be more effective than attending occasional events. Seeing the same people consistently gives you the opportunity to have more substantial conversations, learn about their businesses and demonstrate how you conduct yourself professionally. Over time, familiarity can develop into trust, and trust is one of the foundations of a strong referral relationship.
There is therefore little value in attending one networking meeting and deciding that it has not worked because nobody immediately offered you business. Some of the most valuable relationships within a network may take several months to develop.
Take an Interest in Other People’s Businesses
If you want other people to understand your business well enough to recommend you, it makes sense to offer them the same courtesy. Listen carefully when other members explain what they do, ask questions and try to understand the type of customers they would genuinely like to meet.
This makes it much easier to recognise opportunities for other members during your normal working week. A customer may mention that they are struggling with their accounts, considering moving premises or looking for a new website. If somebody within your network provides exactly that service, you are in a position to make a useful introduction.
Good networking should never become an exercise in keeping score, where every referral given is expected to produce one in return. Nevertheless, a group in which members actively look for opportunities for one another will naturally be more productive than one in which everybody simply waits to receive business.
Arrange One-to-One Meetings
There is only so much you can learn about somebody’s business during a group networking meeting. Arranging occasional one-to-one conversations with other members gives you an opportunity to understand their work in much greater detail and to explain your own business properly.
These meetings do not need to become lengthy sales presentations. A coffee and a conversation about the types of customers you each work with, the problems you solve and the introductions you would find useful can be far more productive. You may also discover complementary services and opportunities to collaborate that would never have become apparent during a short networking introduction.
A web designer and photographer, for example, may regularly work with the same types of clients without competing with one another. The same could apply to an accountant and financial adviser, an estate agent and mortgage broker, or a solicitor and HR consultant. Understanding these connections can lead to referral relationships that continue for many years.
Make Your Business Easy to Recommend
A personal recommendation may be the beginning of a new business relationship, but it is rarely the end of the prospect’s research. Once somebody has been given your name, they are likely to visit your website, look at your LinkedIn profile or search for your business online before contacting you.
Your online presence therefore remains important even when your leads are generated through face-to-face networking. Your website should clearly explain what you do, who you work with and how somebody can contact you. Testimonials, case studies and examples of previous work can provide additional reassurance that the recommendation they have received is well founded.
This is where networking and digital marketing work particularly well together. The recommendation creates trust and awareness, while your website and wider online presence provide the evidence somebody needs before taking the next step.
Look After the Referrals You Receive
If somebody has taken the time to introduce you to a potential customer, respond promptly and professionally. Even if the opportunity is not ultimately suitable for your business, the person making the introduction should feel confident that their contact has been treated respectfully.
It is also worth letting the person who referred you know what happened. If an introduction develops into a successful working relationship, thank them and tell them. This is not simply good manners; it also helps them understand that they correctly identified the type of customer you can help, making it easier for them to recognise similar opportunities in future.
Over time, somebody who repeatedly receives positive feedback from the people they introduce to you is likely to become increasingly confident about recommending your business.
Stay Visible Even When Business Is Busy
A common mistake is to begin networking when the order book is quiet and disappear as soon as business improves. The problem with this approach is that networking relationships and referrals generally take time to develop, which means waiting until you urgently need work can leave a considerable gap in your sales pipeline.
Maintaining a regular presence allows relationships to continue developing regardless of how busy you happen to be at a particular moment. Somebody you meet this month may introduce a customer next month, next year or even several years later. There is no reliable way of predicting when a relationship will result in an opportunity.
For this reason, networking is better regarded as an ongoing part of business development alongside SEO, social media, email marketing, advertising and other methods of generating enquiries.
Become Known for What You Do
The ultimate aim of referral networking is to become the person who immediately comes to mind when somebody encounters a particular problem. If a member of your network hears that somebody needs a new website, an accountant, a solicitor or a mortgage adviser, you want them to associate that requirement with somebody they already know and trust.
This is one of the reasons Firefly Hub operates with one member per profession within each hub. Rather than having several businesses offering essentially the same service competing for attention within the same group, each member has the opportunity to establish themselves as the recognised person for their profession.
That position is not created simply by occupying a seat, however. It develops through regular attendance, conversations, reliability and the relationships you build with the other people within the network.
Building a Referral Network Takes Time
Getting more referrals through business networking does not require aggressive selling or repeatedly asking people for leads. In fact, the opposite approach is often more successful. Explain your business clearly, be specific about the introductions you would value, take a genuine interest in other members and give people sufficient time to get to know you.
The strongest referral networks are built on mutual trust. When people understand what you do and have confidence in the way you conduct your business, recommending you becomes much easier. Eventually, when somebody asks them, “Do you know anyone who can help me with this?”, your name is far more likely to come to mind.
Grow Your Business Through Firefly Hub
Firefly Hub brings business owners and professionals together to build relationships, exchange opportunities and generate warm referrals. With one member per profession within each hub, members have the opportunity to become established within their local business community while developing connections across the wider Firefly network.
If you would like to find out whether referral networking could help your business grow, come along to a Firefly Hub meeting and experience it for yourself. Meet other local business owners, learn about their businesses and begin developing the relationships that could lead to future customers, collaborations and referrals.