Best Practices for Building a Referral Network
If you’re a small business owner, you probably already know that referrals are one of the best ways to attract new business. Now is definitely the time to be searching for networking groups near me!
Why networking groups?
Because they're a truly effective strategy for building your business, that’s why! A referral network is a group of likeminded business owners that actively promote each other. The goal being quality leads and more sales.
Why do they work?
According to Nielsen, more than 90% of consumers prefer referrals from people they know and trust.
Personal, trusted referrals generate more leads! Consumers are as much as 4x more likely to buy based on a referral from friends or family.
What’s the best way to build your own referral network?
Here are the best practices we recommend for building your own networking groups near me!
Connect with business owners in related industries
We made this the first step, because it’s difficult to hand out relevant referrals if your fellow business owners are in completely different fields. For example, a contractor may have reason to recommend a good realtor, property inspector, or electrician.
To find the best fit for your referral network, ask yourself these questions:
What kinds of services and products will MY customers benefit from?
Within my community, who are the BEST people to provide those services and products?
What value can I bring to THEIR customers?
Make a referral checklist
Now that you know who to team up with, it’s time to figure out when a referral is most needed. You can base your checklist on the following qualifications:
Is it relevant? Having a stable of quality referral partners is a win-win situation. But a customer isn’t likely to use your network buddies if your recommendations aren’t relevant to their specific situation.
Are they high quality? The tricky thing about referring to another business owner is that their work then reflects on your judgement. Only dish out a reference if you’re sure they’ll deliver.
Are you being authentic? Or are you just making referrals to get your own? Keep your customer’s needs a priority!
Be strategic to get the most value out of your referral group.
You’ve built your group, you’ve learned when to give referrals - now use that to your mutual advantage! Start racking up those sales by:
Working on collaborative projects
Use their services and products as part of your own work (or personally!)
Offer incentives for the to use your services on their projects - discounts, loyalty rewards, etc.
Become a Member of the Best Professional Referral Network in Dallas!
No doubt about it, a membership in a professional referral network is a great thing to have. But it isn’t a guarantee of success! Keep your focus on building genuine partnerships and giving yoru customers the best value.
At Pro Net, we build authentic connections between local business owners and professionals. If you’re in the Dallas area and looking for networking groups near me, contact us today! We’d love to give you more information on our events and membership opportunities!