Wednesday, August 13, 2008

Why some people have a great referral based busisness and others don't?

Dear Friends,

You may be wondering why some people have great referral businesses and others don't regardless of market conditions keep reading.

First, let's be sure we have a common understanding of one thing.

What is a referral?

A referral is a business opportunity initiated by a third party.

It's not just a lead.
It's not just a prospect.
It's not just a customer.
It's not just a client.

It's a business opportunity that involves three parties.

You, the referral, and the referrer.

Seen as a business opportunity, a referral is an action that will repeat itself if you understand why people refer.

1. People refer because they know what you do and how you help others.
2. People refer because of how they feel they were treated and the likelihood those they refer will be treated the same way.

Let's go back to our initial question.

Why do some people have great referral businesses and others don't?

Here's one of the secrets...

Exceptional follow up

How often is it left up to the customer to follow-up or call back?
As a customer yourself, do you ever have to call your service provider over and over when you're wondering what's going on?

Do you refer that person? Probably not.

As a mortgage lender or Realtor, have your customers ever called you to ask "if you got the papers, how the open house went, if you heard anything yet?"

And you might respond by saying "I would have called but there is nothing new" or "I was thinking of giving you a call."

Here's a simple rule.

Whoever calls first wins.

If you call your customer first, you win.
If your customer calls you first you lose.

We know it is not a game. When people do business with us they have given us an opportunity. If they like what they experience they'll do it again and tell others.

Remember, a satisfied customer will likely tell only one other person so it is our job to learn how to leverage their advocacy.

Your reputation determines your referrals.

What is your reputation? What do customers really want from you? What are the behaviors that evoke in a customer a compelling desire to want to refer you to their friends or family or coworkers?

Your emphatic ability to anticipate your customer's needs illustrate that you are paying attention. That's right - paying attention.

In a world that is hurried and over scheduled, where everyone is on to the next new thing, simply paying attention is the exception. It can uniquely differentiate you from others.
In our businesses we all pretty much do the same thing, have the same programs, show the same houses, offer the same marketing media, have access to the same information.

It's not just what you do, it's how you do it.

By definition "attention" means the act of keeping one's mind closely on something; mental readiness; care or consideration; courtesy; thoughtful consideration for others.

I don't have to go any further. You get it.

All the things customers want.
All the reasons that make someone referable.
Are you referable?

When I review customer surveys, and I've read thousands, here's what customers say over and over.

"she was always there for us, she anticipated our concerns"
"he made us feel like we were his only clients"
"they were all so attentive and respectful of our situation"
"she kept us informed every step of the way"
"I received sincere, personal attention"
"he was courteous and understanding"
"my time is important, his prompt attention to detail was great"

Paying attention is the foundation of exceptional follow up. It is the behavior that speaks volumes to the customer.

Here is an example:

In the normal course of business when you send a fax or regular mail, call the person you sent it to and say "I just wanted to make sure you got the information I sent you. If you have any questions let me know."

If you were to receive a fax and the sender calls you to make sure you got what was sent, and that they were available to answer any questions, what does that simple follow up call say to you about their service?


Exceptional follow up involves the ability to anticipate your customers needs, questions, concerns, issues, uncertainties and the customers desire to be kept informed during a business opportunity, and to some degree after as well.

You may be thinking this isn't a big secret. You're right but if it isn't a secret than why is it so rare?

I heard it said that "progress is mans ability to complicate the simple things."

Keep it simple.
Pay attention.
Follow up.

So why do some people have great referral businesses and others don't.

Exceptional follow up!

Thanks for spending 3 minutes with me.....
The best is yet to be!

On Your Team.
Jeffrey Stanton
Your Trusted Advisor For Life

One of the fastest ways to build a successful referral based business is by training. Now, with me, I like to invest significant time immersing myself in training, while some people prefer to take it in bite-size chunks. Whatever your preference is, now is the best time to contact me.

If you have found this tip useful, please share it with any friends, family, colleagues and associates who you think will be interested. Feel free to print it (with credit and subscription information) and continue to enjoy the tips. I am always grateful for any comments, criticisms or other feedback that you may have. Please send them to

No comments:

Legal Stuff

CNE is a registered tradmark of Negotiation Expertise,LLC Your Professional Development and the information contained in/om , www, is the sole property of Jeffrey Stanton. the information contained is opinion only and should not me taken as legal or profesional advice. This website may not be duplicated whole or in part with out written permission.
This Site is not affilated with any othe web site and my contain links to outside web sites and is not responsible for other web sites content.

Certain statements contained on this blog may be deemed to be forward-looking statements within the meaning of the federal securities laws. The words “anticipate,” “believe,” “estimate,” “expect,” “project,” “plan,” “forecast,” “intend,” “goal,” “target,” and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, the effect of economic and market conditions including industry volumes and margins; the level and volatility of interst rates; the Company’s hedging strategies, hedge effectiveness and asset and liability management; the accuracy of subjective estimates used in determining the fair value of financial assets ; the credit risks with respect to our loans and other financial assets; the actions undertaken by both current and potential new competitors; the availability of funds from lenders and from loan sales and securitizations to fund mortgage loan originations and portfolio investmetns; the execution of growth plans and ability to gain market share in a significant market transition; the impact of disruptions triggered by natural disasters; the impact of current, pending or future legislation, regulations or litigation. The statements here are not offeres to extend credit as defined by Regulation Z. Rates, Programs, & Availability of Credit is subject to change

Jeffrey S Stanton
DRE ID # 01865119