Small business marketing today is moving from an advertising
driven paradigm to one based on networking, connecting, relationship building,
and reviews and referrals. Consumer goods better have great reviews on Amazon,
and service businesses better have great reviews on Yelp. Then you have review
platforms on Facebook business pages and Linkedin, too.
All of those systems are passive. Sure you can work them,
try to optimize them, even spam them, but they all require that the customer
find you through search.
Proactivity, on the other hand, relies more than ever on
face to face, or at least text/email relationship building. There are plenty of
folks trying to sell small business on the idea that this can be done through
Linkedin prospecting, Facebook video ads, or Instagram storytelling. In fact, I’ve
made a good living and helped my clients use some of those tools t
o excellent
results over the last decade or so. You should be using them.
But almost every small business owner or rep I talk to says
the same thing. They either need to go door-to-door or else do some form of
organized networking. Some of the possibilities include:
- Mixers
- Chamber of Commerce Events
- Service Club membership
- Trade shows and local pop up booth events
- Business Referral Networking Groups.
All of the above hold their own special charms and can work
if they are worked hard and with great intentionality. For this post, however,
let’s take a deep dive into the world of Business Referral Networking
organizations.
Can You Make Money through a Business Referral
Organization?
The following are my recommendations for choosing the right
group. But first allow me to tell you a few things that will influence my
position. I have been a member of three different groups, have attended
meetings of the largest group, and have written about this type of marketing in
at least two of my business books. So, yes! I believe this is a solid way to
generate new business with a very reasonable investment of time, money, and
energy.
I am also currently a director for E-TEAM, a brand new division
of TEAM, one of the largest referral networking organizations in the US.
However, I think you will see that this position is not causing any bias as you
review the methods for selecting the right group.
How to Choose the Right Business Referral Networking
Chapter
You see, I’m going to focus on the chapter, not the parent
organization. So here are the criteria I would use:
1.
No less than 15 active members. No more than 35.
Some very large groups are very successful, but you rarely have time to give a
presentation of your business. Less than 15 is usually a club in distress that
is on the way to folding. The exception would be one that is growing under a
solid leader.
2.
Check before you go as to whether your category
is taken or compromised. Some chapters will go to great lengths to divide up
categories, so they get everyone to join. You benefit if you have more breadth.
3.
When you attend, pay attention to the protocol.
All such groups insist on using good networking approaches during the 15
minutes or so before the formal meeting starts. Are the members standing up and
actively networking? Do you get greeted by one or more members?
4.
Check the membership as they give their 1-minute
elevator speeches. Are there power partners for you in the room? In other words,
are their individual members who share clients with you? E.g. Real Estate
Agent, Mortgage Broker, Handyman, Escrow Company.
5.
Now listen carefully to see how much business is
being passed. The rule of thumb is four referrals per member per month. So, in
a room of 15, you’d expect around 15 referrals to be passed. If less than 5
outside referrals (non-member referrals) , you need to at least ask some
questions.
6.
Always check two or three groups before you
decide, unless you are there because of a strong recommendation or unless the
chapter is obviously super strong and perfect for you.
This has been a serious problem and may still be a problem in
your neighborhood. I was a part of such a group. It was a really good group,
friendly and doing business. Unfortunately, I wasn’t getting a single usable
referral. To be 100% honest, the first week I was given a power partner
referral that turned out to be golden. Then nothing.
A New Kind of Business Referral Group Is Launched - B2B Only
I happened to get into a conversation with the CEO of TEAM
Referral Networking, Kelli Holmes. We discussed my problem. She said she had a
solution. A new kind of chapter where all the members were B2B. Essentially
this meant that every member of the group was a power partner for every other
member.
I attended a local chapter and found the difference to be
amazing. The payroll guy, the merchant services gal, and the website developer
all had exactly the same client profiles. So did the business broker, the
commercial printer, and the business banker.
As I looked around the table at the commercial realtor, the business
coach, and the commercial photographer, I realized that every single person
could basically hand over their customer and prospect data base to the person
next to them, and they could just start calling that list. But instead, the
merchant services rep had spoken to their bakery customer about the payroll
services guy, and the baker was expecting a call.
The result of that meeting was a decision to partner with
TEAM and become a director for this new kind of B2B only referral group. We
call it E-TEAM and were opening them throughout Southern California at this
time, with plans to expand nationally soon.
We are actively building clubs in the Inland Empire, the
Eastern portion of LA County (Covina/Pomona/Diamond Bar) and Northern Orange
County. Our plans are to begin organizing additional chapters in DTLA, San
Gabriel Valley and WLA in the Fall of 2018.
If you would be interested in joining a chapter of an E-TEAM
B2B Referral Networking Group, please call Randy Kirk at 310-910-1848 or email
at
Randy@TeamReferralNetwork.com.
We are also looking for individuals who would like to help build a chapter in
their area. For more information please visit SoCalMasterMinds.com/team
Top categories for E-TEAM
1. Payroll
service
2. Staffing
company
3. Commercial
insurance
4. Lende
5. CPA and/or
bookkeeper
6. Commercial
photographer
7. IT managed
services
8. Website/social
media
9. Commercial Printer
10. Sign makers
11. Merchant
Services
12. Business Lawyer
13. Commercial
Realtor
14. Graphic
Artist
15. Promo
Products
16. Charitable
organization
17. Janitorial
18. Supplemental
Insurance
19. Security
alarm installer
20. Buildout
contractor
21. Commercial
HVAC
22. Guard service
23. Business
Broker
24. Business
Consultant
25. Business
Coach
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