The referral hierarchy
Reuben Swartz
Fun "Anti-CRM" for Solo Consultants Who Hate "Selling" but Love Serving Clients. Put the "relationship" back in CRM: conversations, referrals, follow-up, lead magnets, proposals. Host of the Sales for Nerds Podcast 🍷🍷
When someone asks you for a trusted referral to solve a problem, who do you recommend?
For example, if you need shoulder surgery for a dislocation problem, who would you want?
This is a rhetorical question. The only reason to talk to folks other than the specialist, is to ask if they know someone closer to what you need on the referral hierarchy. You're not going to get your shoulder surgery from a dermatologist or a general practitioner.
Etc, etc.
But when it comes to business referrals, a lot of people are "doctors" or "health care professionals". Maybe even "surgeons".
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They want referrals and think that having a broad circle of possible referrals is helpful.
But it's not.
Even if someone can remember you in a given situation, which is unlikely, because there are so many "doctors", they're not going to recommend you because you get preempted by someone higher in the referral hierarchy, someone closer to exactly what the person with the problem needs.
So many people in my world are "doctors" for "small business owners" who are "looking to grow revenue". This is a broad ring, way down in the referral hierarchy, which means you get preempted by people with a more specific match.
"But I do get referrals, I'd just like to get more (and maybe better ones, too)", you might object. I'd wager that these referrals come from people who know that while your office door says "doctor", you're really an orthopedic surgeon specializing in repairing dislocated shoulders. What if everyone knew that?
"But I can help some of those other people", you might also object. Sure. And if you're on an airplane, they'll take any doctor they can find. But in your regular practice, you're only trying to take on these possible clients, the ones who take 5x as much effort to convert, and 10x as much effort to serve, for half the revenue, because you're waiting room isn't full of the ideal prospects. What if it were?
Administrative Assistant
2moReuben Swartz This newsletter offers a valuable perspective on the importance of niche specialization in networking and referrals. I've often found that being too general in my offerings can lead to less effective referrals and a broader but less targeted client base. I'm curious to know more about your specific strategies for identifying and targeting your ideal clients. How do you effectively communicate your expertise and differentiate yourself from others in your field?
Managing Director, WEBii.net | Helping businesses and non-profits build beautiful functional digital solutions.
2moGreat insight and reminder about our gain of time when we focus. What we also need to realize on the "ask side" is that when a client asks us for a referral, that means they already have a sense of trust with us - awesome! We don't want to break that trust, we want to make it even stronger. A great way to do that is recommend the right kind of referral partner who is the most likely to satisfy their need, making us look good - or - be honest that you aren't sure who the exact best vendor is. On the receiving end, when someone is referred your way and they are not the right fit for your target service, be genuine and honest. If you do know the right person, give them the tip. They will probably be impressed that you were kind enough to refer business elsewhere to another person you trust. And they are somewhat likely to remember you when their needs grow to your niche.
Scale Your Impact and Income w/o Sacrificing Your Sanity ⭐️ Business Growth Strategist for Coaches 🌱 Scalable Genius Method™ 🎙️ Podcaster 🤝 Co-Founder GEM Networking Community
2moOne challenge I run into is that I often help people figure out what problem they need to solve and how (strategy). But that's not as specific as "I solve problem X."
Speaker | Author | Mentor Science & Tech Execs to Drive Decisions Faster| HOW-TO Model®️Creator | Your Guide to Telling 'Stories that Stick' to Stakeholders
2moWhen someone asks for a connection, I send someone who not only solves the problem but also adds value beyond the ask. It’s the same with positioning—make sure you're the solution people need, with a little extra they didn’t expect. Reuben Swartz
B2B Companies Needing a True Marketing Reset | Fractional CMO for manufacturing, SaaS and professional service companies.
2moGreat points as always Reuben Swartz. One of my power partners suggested this as a way to zero in on the best referrals - She said, what should I be listening for in the conversation to recognize a great referral for you.