Is it a lead or a referral?

Having attended several events lately, I have heard the terms “lead” and “referral” bantered around.

Which would you rather have? Referrals of course. It’s the personal power of a sales lead. A recommendation, not just a name. Credibility, not just a place to call.

I can’t tell you how many times I heard the term, “don’t use my name” when passing along a possible lead. Seriously?

HISTORY: I have attended many (many) meetings and belonged to several groups for networking. Here’s how they work, and ideas on how you can join groups that are willing to give referrals rather than leads.

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The group I have belonged to for the past 20 years is Metrolina Business Council (MBC) in Charlotte, NC – it’s one member per category (the best kind of group) – it meets informally twice a month. First and third Wednesdays starting around 6:45 a.m. until 8:30 or so. About 100 members who all know each other. Many for 20 years or more.

The meeting starts out with early networking. Members get there early to talk and connect. About 30 minutes. Then a buffet breakfast followed by going around the room and, member by member, saying thanks for business, lunch, opportunities and referrals. No measuring of who did what, just a sincere appreciation for business and opportunities. My personal goal is to give one referral, and to be thanked at least five times at each meeting.

After the thank-you’s there’s a speaker for 30 minutes or so and a general exchange of information and business ideas during the networking. It works, and major friendships are built. Oh yeah, and people do business with one another and give referrals to one another.

The group has been around for 30-plus years with many original members still active. It works.

Then there’s the more formal type of networking. The best known and largest of which is BNI – Business Networking International. The reason I like BNI is that the focus beyond networking is on internal testimonials, building personal and business relationships, customized, specific, creative personal commercials, bringing in outside guests, generously offering genuine business referrals, not leads, and reporting on closed business.

I have attended several BNI meetings as a guest, been to some informal one-on-one meetings, and even given a talk to one of the groups in NYC.

I was lucky enough to be present when Todd Hallinger, one of the owners of the NYC BNI franchise, gave a short talk on the value of BNI and referrals. It was a very interesting perspective on the networking/relationship process and worth repeating for both its insight and accuracy.

Here are Todd’s hallmarks:

n You must let time pass to let people get to know the real you. Your first impression needs to be the REAL YOU. And you must consistently display it.

n You must be willing to give without expectation. Meet with each person in the group more than once, get to know and like one another. Give trust, referrals, testimonials and bring visitors. I always say, “All things being equal, people wanna do business with their friends. All things being not quite so equal, people still wanna do business with their friends.”

Here are some definitions that will help you give and get more referrals:

DEFINE BLIND LEAD – Here’s a name, don’t use my name.

DEFINE LEAD – Here’s someone I think you could do business with, you can mention my name, but it won’t mean anything.

DEFINE REFERRAL – Here’s someone I am friends with, have a relationship with, and or I’m doing business with that I believe you could do business with.

DEFINE ACTIVE REFERRAL – Here’s someone I am friends with, have a relationship with, and or I’m doing business with that I believe you could do business with, and I WILL MAKE THE INTRODUCTION for you, with you.

Most salespeople are not willing to do the hard work that makes selling easy. You? •

Jeffrey Gitomer is the author of 12 best-selling books, including “The Sales Bible.” He can be reached at salesman@gitomer.com.

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