Risks with referrals

The risks with referrals

We all love getting referrals. 

Who doesn’t like getting a useful referral? They are usually an easier sales pitch as the referrer has already done some of the work for you.  I acquired a new client at the end of last week from a referral, so I am particularly positive about them at the moment. 

There is one real issue that stops people giving referrals – the risk to them. 

Let me explain: 

When someone refers you, particularly to one of their clients, a little bit of their reputation goes with the referral.  There is a, hopefully, small risk that you won’t do a good job.  If that happens, there is a potential risk that your referrer could lose their client.  

On the positive side, if you do a very good job, their reputation is enhanced with that client. You are then far more likely to get more referrals from that person.  

The principle of liking comes into play here which can be broken up into three simple points;   

  • having a preference for those that we consider like ourselves in behaviour, values and attitudes,   
  • those that pay us genuine compliments, and most importantly,  
  • those that cooperate with us towards shared goals and vision 

Therefore, when some refers you, by managing to match the positive perception of the referrer, their reputation is enhanced with that client. You then gain an increased trust, improving the likelihood of you gaining further referrals from that person. 

So the morale of this blog is simple, if you are looking at getting referrals from your network, make sure you deliver on your promises.  

If you are looking to further improve your prospects of effective networking and gaining relevant referrals, our marketing experts at SME Needs are here for you.