Bad Referrals? The best business comes from referrals – when done properly. Gerry Rose sheds a glimpse into the ugly side of referral business, and explains how to protect your business and continue to be successful using the referral system.

The Ugly Side of Referral Business and What to Do to
Protect Yourself
by Gerry Rose, Integrity Networking Solutions

As most of you know, 100% of our business comes by referral.  This comes through the use of the Four Plus Two Marketing, Advertising and Promotion Strategy.

Frequently I am asked, “Why is it that more people choose to give business to others rather than refer business to me?”  One realtor actually told me that her friends and family did business with other realtors rather than her.  Please read on for the answer.

I recently heard of a referred piece of business worth in excess of $300,000.  The deal went something like this:

1. The referred professional was late for the appointment by 10 minutes. 
2. When the professional arrived, he was on the cellular telephone for another 3 to 5 minutes while sitting in the car, ignoring the waiting client.
3. An important mistake was made when transferring some important information to support staff for financial qualification.  Clients who would have qualified, did not qualify.
4. No follow up happened early enough in the transaction to make the deal work.
5. Nepotism.  One team member was chosen because of her relationship with the deal’s “team leader.”  The team member failed to perform.
6. Improper use of language.  In telephone messages, the expression, “my bad” and other slang associated with the youth of today was used.
7. To explain away poor performance, team professionals used excuses such as the car broke down, month
end close, and I forgot to make the call.
8. The wrong name of the client was repeatedly used in telephone messages by one of the team players.
9. Client’s standards were said to be “too high” as the reason stated for why the deal fell through.

The nine items listed below, when followed, will allow you to avoid the nine issues above.  The numbers one through nine, correspond below to those directly above. 

1. Refer business to people who have a history of being on time.
2. Refer business to people who know that the most important person is the existing client and the second most important person is the new client.
3. Do business with financial professionals who have a track record of personal success.
4. Follow up at all costs.
5. Only use a relative if they are the best at what they do!
6. Use correct grammar or the native language of the person you are addressing. Trendy language that is less than appropriate should be avoided. If it is new technological jargon be sure to define it or avoid its use.
7. Get rid of the excuses.  We all have “life” that gets in the way.
8. Be sure you have the person’s correct name.  My name is Gerry or Gerald.  Call me Jared, George, or Jerod and you will lose the sale.
9. A client’s standards are their standards.  Make sure the professional you are referring has high standards.  The referred professional’s standards should match your business, personal, and professional standards.  Bill Gates, I am sure, has high standards.

Sooner or later we all experience what happened in the deal above. That said, the best business comes from referrals.  The easiest business comes from referrals.  The highest priced business comes from referrals.  Keep giving referrals to get referrals while following the guidelines above and watch your success soar.

Gerry Rose was guest on The Success Express business career radio show that aired August 22, 2008. To listen to the entire, unedited show, please click here. To listen to Gerry's interview, please double click on the Play button below.