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Creating Effective Referral Relationships

Nov 11, 2007
Referral relationships of all kinds are often perceived as very delicate things that require extra effort to maintain. However, a referral relationship can also be something that can provide security and can also be long lasting, despite times of challenge.

Building an effective and lasting referral relationship is a necessity for several reasons.

Let's look at this from the perspective of a growing organization.

For example, in a group or organization, the well being of the people depends on how efficient and effective that group or organization works. The relationships of the group or organization is also dependent on how the members work well with management.

Society is defined as a web of relationships, which requires all parties to work and contribute their share in order to achieve a common goal. Having a referral relationship that is good, where cooperation and respect are manifested, just makes things work better. In this way each member works for the good of the whole and towards achieving a common goal. This can only be attained with effective and efficient relationships.

Understanding the other parties' feeling and position creates an effective and efficient word-of-mouth relationship. The easiest method to understand what is important to another party is to ask them what they want out the relationship. Then tisten to what they have to say.

Effective and efficient referal relationships require parties to openly express their feelings and positions on all matters pertinent to the relationship.

Respect is the key to relationship. In order to create a more effective referral relationship, parties should treat each other with respect. We can show respect just by listening to the other party and by trying sincerely to understand how they function. You can also show respect to other parties by confirming that they are doing everything they can.

The opposite of respect is quick forming of judgements based on unfounded facts and prejudice. Bad news.

Respect is the very foundation for a great referral relationship. This also means respecting yourself and respecting others.

Effectively listening and no pre-judging: This is important if parties to both sides of the referral relationship are to understand each other.

Referral relationships are important to anyone. Addressing issues and problems right away is a must to further improve the relationship. As they say 'No Man is an Island'.

Here's a tip:Focus on becoming better friends and continue to build a relationship with clients, customers and colleagues by anticipating needs and beating them to the punch.

I have a saying, "Referrals love speed." Essentially what I mean is that referrals and introductions happen more consistently with the more action you take--and the faster you take that action. You can do so by actively sharing information that the other person finds useful to their own lives. Provide value to others in their over-hectic, frantic and stressed world. This creates T-O-M-A. top-of-mind-awareness.

For example, you may be able to offer a suggestion to a person where they are able to make more money. Or show them a current competitor's marketing approach that you have noticed. The idea is to become a valued, welcomed partner and share information that helps them improve their personal or business lives.

Action Step: Categorize all clients, prospects and colleagues by interest levels. Subscribe to trade journals and local newspapers, and make a conscious effort to look for news that would interest them. Reach out with this information frequently.
About the Author
Daryl Logullo is the Founder of Strategic Impact!
and MaximumReferrals.com. He concentrates
on referral building strategies for today's professional.
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