Feel free to use this formula. It is a brief version of the Referral Pipeline calculator from the Referral Institute Referral Pipeline course. I use this for new BNI members to get their Mindset of giving, training and contribution from the start.

Use this when the Chapter President ( Chapter Director ) sits with the new members for their induction after being accepted into the chapter.

1 Imagine in 1 years time when your renewal is up . What is the amount you will have earned that will make you hand over the renewal fee immediately no hesitation?. Have they even thought about it? Get them to consider , membership fees, their weekly payment, their hourly rate for time invested. The profit to make it worth it. I normally want them to be about 170,000aed ( $46,500 ) +

2 Ask,How much is the value of 1 referral to your business average ( people will tell you they can’t do it because they have low and high fees. Reiterate AVERAGE )
a. Calculate number 1 divided by number 2 =number of closed referrals needed each year

3 What is your closing % . i.e from each 10 referrals how many will you close 1in 10 = 10% hence they take the value of 0.10 and x 2a above = number of referrals needed to hit their target.

4 How many weeks will they be at BNI 50 ? or 48?

a. Divide number 3 by 50 or 48 = how many referrals they need to receive each week

5 Here is the kicker- based on Givers Gain if they want to get 2 referrals a week guess how many they have to GIVE = 2 ?
( this may fluctuate depending on average business value and industry but the idea is the same )
For anyone who is concerned at this point remind them that BNI has training and support to help them achieve this as part of the membership.

If you want to see a more accurate calculator here is a link feel free to use or share it.
Good luck

One of the ways I promote my Referral Partners is on my email signature. I have a small section mentioning who they are and the benefits of their product or service.

I tend to reserve this tactic for people who also go above and beyond in helping me. I have also experienced their product or service myself and am confident to refer them.

The individuals will also be experienced in Referral Marketing so they understand the process.

They are free to get in touch directly or I will introduce them. Ideally, I like to introduce them because it also gives me that chance to ask the potential client pre qualifying questions on behalf of my referral source. This will save my Referral Partner time and make their business more efficient. If the product or service is not right for the prospect then we establish this in the questioning and I can refer to another supplier if I know one. Either way I am providing a better quality referral and not wasting anyone’s time.

Finally, keep it brief.

Only this week I have generated 2 fantastic referrals from my signature promotion.

One of the simple techniques we use with our clients to hep generate social capital is the “how are you”? call . Simply call your network once in a while to see how they are. There is one caveat it is not to sell to them or ask for anything . It is a simple how are you phone call.

It is interesting however that this simple technique can also produce results.

This week two of my Certified Networker students reported that as a result of these calls they generated Business.

Vanita Kapoor from Envogue events found out that the person she had called had lost her details and was actually trying to get hold of her and was about to give up. She ended up getting two events as a result.

Ramez Helou of the Sales Academy called a friend he hadn’t seen for a while to say “HI”. Two days later his friend called him back and asked if he would consider working in Oman. He said he would love to go there to teach sales skills and off he went. By all accounts it was a peach of a contract.

Who have you not spoken to lately?

Networking is a muscle

I was speaking to one of my network this morning. Warsha Joshi from Platinum VA. She was explaining how suddenly she was seeing opportunities to refer and help people all over the place. She is also receiving an increase in high level quality referrals. And importantly an increase in closed business with ideal clients.

Does this have anything to do with the fact that she now finds herself surrounded by a group of highly motivated people who are helping her to succeed with referrals and advice? People she also helps and advises in return because she believes in them and their business.

What doesn’t always appear obvious is that most business people actually have all these opportunities and networks all around them to start with. They just don’t see it; because they have not opened their eyes to the opportunities nor have they been trained what to look for- they have never worked their networking/referral marketing muscle.

Developing these opportunities requires an investment in time, education and resources with the catalyst of “mindset” to bind it together.

Many people think of networking as meeting as many people as possible getting their business card and selling them a product or service. This could also be called cold calling face to face.

This is very much like digging up a fruit tree to carry away the fruit, a one time hit. Rather than watering and caring for the tree to reap regular fresh fruit that could last for years and while there suddenly finding there are other trees which bare fruit and often even better fruit.

Warsha has learnt that by thinking of others and especially being strategic about the people in her closest network she is using her time and resources more efficiently. She is working less and getting more ROI “return on relationships”

Networking and referral marketing are muscles that need to be worked.

As with any muscle the correct technique needs to be employed in the exercise to prevent damage (bad word of mouth or inappropriate referrals). It also needs to be worked regularly to ensure it gets stronger (immersion –a way of life).

Practice does not make perfect. “Perfect” practice makes perfect.

When we are kids we are told to try an try again to get good at something. As adults we attend a training session once and think we know it all.

Doing any course twice, just like watching the same film twice will revile many new learnings and things we missed.

I suggest what ever course you attend whether Referral Marketing, networking, cookery or dance. Do it again.

Now back to my “Peter and Jane ” book:)

Ever thought of a referral request as a readymade sandwich?

Have you ever been hungry and someone has offered you readymade sandwich? It’s great, you just pick it up and eat.

Imagine, someone saying “are you hungry” and then “well if you are, go and make it yourself “I know I have often said “oh what the heck I can’t be bothered I will wait”.

Referrals can be a bit like this.

You may be asking for referrals from your network and they may want to be giving them to you.
Yet they often never come. One reason maybe that they simply do not know: Who to say it to; what to say; how to start the conversation and even move onto an introduction to you.

This is asking them to make the sandwich themselves. We need to provide them with a readymade sandwich, if we want their help.

Tell them who you want to speak to, give them a script from first contact, to developing a need and introducing you as the solution. While we are at it, they can also handle objections for you.

Even worse your contact may decide themselves what to put in the sandwich, and get it completely wrong. You get the wrong clients, poorly briefed referrals and a number of annoyed people at having their time wasted

We must make it easy for them to help us.

Referrals should be a readymade sandwich

I often hear people saying they are not on Facebook because it’s not serious. Business should be done on Linked IN. They even say Facebook and social media as a whole, is a waste of time.

I would argue they are very different, both applicable, and both can generate business. While I do not want to go down the route of training people which to use and when. I would leave this to social media experts in your network.

What I am willing to comment on is my own experiences.

I am active on Facebook, I spend about 20 minutes a Day Maximum ( my wife won’t let me spend more:) )
I mix my posts between what is going on in my life, some bits social; some bits business; some bits just fun. After all when we do business don’t “people buy people?”

If I were to go on Facebook and only sell I would soon have everyone deleting my contact. If all I did was make comments like” off shopping” or “shampooing the dog” people will soon get bored.

It is variety that is key. I also have a number of pages for each of my networks and I blog regularly

Anyway, this week I have 2 connections from Facebook attend my chapter both have applied to join. Both will be great additions to the chapter.

James Hartnell was introduced by his wife Priya, after I commented on her post for assistance. I referred her to a colleague. She checked out what my profile and the result was her husband attending our BNI chapter.

The other Tayyeb Sharaz, is an old work colleague who has been a connection for over a year and now his business is in a position to free him up to network He contacted me and asked to attend.

A third contact Vanita Kapoor attended and she has joined “The Referrals for Life Community “ and will join BNI soon as part of her strategy.
Facebook gives you touches, it helps your visibility marketing and lets people now what’s happening. It’s up to you to build credibility and then progress them to Profitable Referral Relationships.

Social media is not a total solution, is part of your referral marketing plan or at least it should be.

Ladies and Gents, it works if you work it. Good luck

Here’s a quick message from a graduate of the Referral Institute and very good friend Dave Crane (The Life Designer).

I have just returned from an amazing Internet Marketers Cruise in the US and I used the networking skills, taught to me by Phil to make a number of very lucrative joint ventures and to get invited to join some of the industry’s most exclusive mastermind groups.

I have used the amazing techniques from the course to build my tribe.

Take a look at this…

Thanks Phil.

You are the best.

Dave Crane

The Life Designer

http://www.davecrane.tv

It nevers fails to amaze me how networking works.

I have just received an email from Gail Nott in San Francisco. Gail is the Social media expert who deals with the Referral Institutes social media strategies . I recently met her, while speaking at conference and we are connected also through facebook and twitter

Gail has just sent me a referral to a reporter who is looking for expert sources for their newspaper to quote and interview on referral marketing and networking. What makes this incredible is the reporter is working for an Abu Dhabi based paper just 1 hour from where I live and Gail lives half way round the world 16 hours flight in Concord USA.

The world is indeed small if you are connected. Thanks Gail for the referral and I will let you know how I get on.
Phil

what a crazy statement and yet it seems to be the norm in so many business. We all know customers are the life blood of a business and yet why do approximately 60% of customers go to another supplier.

Research suggests the main reason is because business do not stay in touch i.e communicate with their customers. The customer in a nut shell thinks we don’t care and they forget about us.

Only yesterday I was speaking to the manager of restaurant here in Dubai, He has just returned after 9 years to the bar he opened back in 2001. The bar is nowhere near as successful as it used to be, competition is moving in every where and their numbers are down. My friend decided to do some research and find out what happened to his old loyal clients.

His answer was simple and I think of no surprise:

1 The new mangers and staff began to change so regularly that the customers lost a relationship with the staff.
2 The venue stopped communicating about up and coming events with the customers.
3 Key customers in the Latin community ( a huge influencer for customers to date ) had not received a communication or update in 7 years since he left
4 I myself had to fight to be included on an email from the venue. which finally happened twice and now they have stopped again. ( I have been a customer myself for 9 years )

This scenario is not unique to this restaurant many business have a very poor database management system. It’s not enough just to have a database it must be managed and used strategically.

As a referral marketing expert I know that the best source of referral is not necessarily the existing client ( the best is a proactive contact sphere relationship) . They can, however, provide us with lots of referrals and of course repeat business.

If you are not reading this and do not know who your best client was 5 years ago or have not been in touch with them in the last 6 months I would suggest something maybe missing.

For people in Dubai, if you do need to sort out your database I would recommend the services of Strategy Marketing and it’s owner Corrina Cross I have seen Corrina produce immediate results during this recession for her clients. If you are new in business why not get your database and communications set up from the beginning. Kill the monster while it is little.

We need to keep our customers (who are part of our network) speaking and thinking about us, this is part of the BUZZ we need to develop in the market about us and our products. And boy is it a HUGE part.

Who cares about their customers? hopefully you do:)