Time is Money
Investing in a Referral Relationship

Think about the best personal relationships that you have experienced. What makes them last over time? What makes them flourish? How much time have you invested in that relationship? These relationships are based on mutual trust and mutual gain.

In business, we often hear … time is money. Time is a huge commodity that cannot be wasted. When we want a personal relationship to be successful, we are very willing to give our time to that relationship. The minute we feel that our time is being wasted, we want out. It is no different in the business world. The business relationships that we develop must be a win-win for both parties in order to flourish.

Referral marketing is successful because of the amount of time you are willing to invest in your business relationships. As mentioned earlier, time is money. The more time you invest, the more referrals you will get, the more money you will make. It’s that simple.

So what specifically can you do with your time to create a win-win business relationship that leads to more referrals? Let me suggest three actions that you can begin to implement today.

1. Get to Know Them

Select three people, who know you, like you and really trust you. Ideally, select people who do not compete with you and who are in front of the same type of prospects as you want. Call them today and set up a meeting over breakfast or lunch. To receive quality information from these meetings, Dr. Ivan Misner (founder of BNI) recommends directing the conversation using the GAINS approach. What are your and your network members Goals, Accomplishments, Interests, Networks and Skills. Your ability to master and build relationships one-to-one accelerates the referral relationship process. Basically, it pays to know people and their businesses well and it pays in ways you might never have suspected.

2. Get to Know Their Business

Spend more time with them and their business. Discuss their target market, successes, challenges, and visions for their business. Visit their office. Attend an open house or mixer that they sponsor. Go to networking events together to meet the people that they know. In order to offer and consequently receive quality referrals, you must understand thoroughly what an individual’s business provides and be able to articulate the value in it for others. You must have confidence in yourself and your understanding of their business in order to generate quality referrals for your colleague. Continue to learn about them and their business until you gain that confidence.

3. Listen on Their Behalf

Get to know the types of referrals your fellow associates are seeking with the goal of passing on the highest quality referrals possible. This is the “givers gain” philosophy, which goes back to the Human Law of Reciprocity. I’ll scratch your back if you’ll scratch mine. Once rapport is developed, actively listen and respond to referral opportunities for your colleague. Listen for others expressing a need for your colleague’s services. Respond with an honest testimonial and a clear understanding of the value that your colleague could offer this prospect.

With each referral you give, you demonstrate that you support them and their businesses or careers and that you are on their team. The goodwill that begins to develop as a result of your active participation in providing others with referrals is critical to creating lasting, mutually beneficial business referral relationships.

Yes, time is money. However, never lose sight of this perspective from Dr. Misner: “A referral-based business can reward you in ways beyond those measured in dollars. Dealing with people you like and trust is a better way to live and work than sparring with strangers all day long. You may even find the relationships you form with your referrals sources are more important than the dollars your new customers bring you.”

By Michelle R. Donovan, The Referability Expert and owner of Pinnacle Training Services and Referral Institute in Sewickley, PA. Michelle teaches a referral generating system that covers all aspects of productive and effective business networking and referral marketing. Her goal is to provide business owners with continuous never-ending profitability from word of mouth referrals.