If You Refer Others, They Should Refer You

In our personal and professional lives, we all purchase goods and services from others. We give them something of value (usually money) and we get something of value in return. We may get a used car, paint, or a repaired lawnmower. These are ongoing relationships that can mean so much more with a little extra effort.

Some of our relationships can include our:

• Insurance Agent
• Accountant
• Banker
• Lawyer
• Dentist
• Hairdresser
• Plumber
• Landscaper
• Mechanic  

You probably maintain these relationships because you’re happy with the service or product. You might also like the person and refer business to them. If you’re thinking of them and taking the time to talk to others about their business, you’re engaged in some of the most valuable marketing and sales they could possibly get – word of mouth or social proof. 

Social Proof is a Powerful Tool if You Know How to Use It

Social proof is a marketing and psychological term. When we need a product or service, we want to do it right. The top priority for many of us is finding someone trustworthy (especially if we’re buying something important or expensive). If we don’t know who that is, we could take a lot of time and energy, and investigate who’s available, credible, and provides a good value. We could also use trial and error. We might pick someone at random. It might be a good result or it may be a disaster.

Or we can avoid that risk, time, and energy by asking someone else for a suggestion. We will assume that if someone else had a good experience, we probably will too. Social proof is so powerful it’s spawned a whole online industry. It’s why there’s Yelp, Angie’s List, and Avvo. It’s why Amazon product listings include reviews and why there are testimonials about how a candidate is such a great person on political ads.

Ask and Ye Shall Receive

Your social proof helps build their businesses. Are they helping build your business too? Are they working hard to refer others to you? Probably not:

• They may not know what you do. You may not have invested the time to fully introduce yourself and explain what you do, the problems you solve, and the types of clients and customers you seek.
• Did you ask them for help? They may be happy help you, but unless you ask, they may not think about it.

It shouldn’t be a hard request to make, especially if the other person owns or runs a business. They should be willing to exchange the value you’re providing them (payment for their goods and services plus positive word of mouth) with value to you. Ideally, your contacts should have a sense of fair play. It’s only fair they help you if you’re helping them.

Another big reason for them to refer you to others is another psychological issue, reciprocity. Generally, we hate feeling indebted to others. We will go out of our way to do something for someone who did, or just offers to do, something for us. If you tell your accountant or mechanic that you’re actively telling people about them, they’ll feel indebted to you, even if no one you talked to came to them. To relieve themselves of that debt, they’re likely to “pay you back” by talking up your business. 

Help Others Help You

If you want to learn more about how to leverage your relationships and grow your business, call me at (856)905-7040 or fill out my contact form, and attend one of my online seminars. Let’s start the conversation about how we can help ourselves and others.