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Do you have anyone in your circle of relationships, business or professional, who would say great things about you? Perhaps even say them to a potential prospect?

If you do, congratulations – consider them a treasured source, real gems with which to work. If not, why not?

How to Spell Referral
The earliest recorded use of the word referral in the professions was in 1927. It’s been around awhile. Maybe it’s time to rediscover it again.

Here is a simple summary of referral source development basics:
• Relationships. Relationships are the key concept in RSD. The quality and quantity of referrals you get depends on the quality and quantity of the referrals you give!

Referral marketing works because within these relationships, the goal is mutual benefit.

• Engagement. Teaching your referral source how to engage a prospect in a first contact, on your behalf, has the most significant impact on your later success in converting them to clients. Always remember: someone else can “sell” you better than you can see yourself.

• Follow-up. After the source talks with the prospect, more follow-up may be appropriate.

First, from the source, with further verbal or written information (materials you have thoughtfully provided to your source).

Then you meet with the prospect soon thereafter, ideally with an introduction from your source.

• Evaluation. Analyze the activities and results of your RSD all along the way and you’ll be able to tell what to stop, start, and continue doing!

• Recognition. It’s important to recognize your sources – both at the time the referral is made and certainly after a referral has become a client. Keep your referral sources informed.

• Rewards. Establish a consistent reward program that demonstrates your appreciation.

Rewards would include thank you letters or phone calls, or having them visit your firm and meet with your partners.

You may ask them to attend CPE or CLE courses your firm sponsors. You should not, however, pay for referrals.

If you sometimes reward certain actions and sometimes not, your sources may consider you ungrateful or unreliable and, certainly, inconsistent.

• Advising. Provide your sources with valuable advice. Make them confident that you are an important source for them and referees.

• Leadership. RSD requires self-leadership. Stay with your RSD efforts for the long run.

• Service. Continuously seek and find ways to serve your best sources.

Wrapping up
If you have not yet realized the vital role of RSD in the long-term success of your practice, use this formula to set up a system that works for you.