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Business success is dependent on a solid financial foundation & success looks different to everyone & there is a lack of equity of access to resources and information for small business owners and independent contractors & there is a societal narrative making us believe “balance” is our ultimate goal & … There are so many “&”s that impact being your own boss. Let’s have some frank discussions on the basics of business with a holistic focus on everything that helps business owners define and find success.
Molly Beyer: [00:00:08] Welcome to The Ambiguous &: Business Basics and Beyond, the podcast where we have frank discussions on the basics of business with a holistic focus on everything that helps business owners define and find success. Each episode is a reminder that success isn't one thing, it's a whole lot of ambiguous ands. Like, subscribe, or follow, and let's explore these ambiguous ands.
[00:00:34] Hello and welcome to The Ambiguous &: Business Basics and Beyond. I'm your host, Molly Beyer, and I'm here to lead you through frank and holistic conversations on the basics of business. In this episode, we are going to really dive deep into using referrals as a growth strategy. I've actually grown my business thus far entirely through referral marketing, first with a small online group that was just forming at the same time as I was starting my business, and then through membership with BNI. But whether or not people are part of a formal networking group, I do believe that relationship building and referral marketing is one of the best ways to build a small business. We may think that we know how to pass referrals, but do we know how to pass good ones? And there is a difference, because a referral isn't just a name. It's not, "Hey, you should talk to Molly". That's not a referral. That's a suggestion with extra steps. And if we're being honest, those don't convert very well.
[00:01:27] One of the biggest problems is that effective networking is not something that we're taught in school, not even business school, and it really does us all a massive disservice. In every area of our lives, building effective referral relationships helps us to further our goals, but we aren't taught how to do it. And you may think that salespeople are taught how to network, but they're not. They're taught how to sell. The difference is that networking should be about building relationships and focusing on how you can help others, not on trying to get people to buy from you. The worst thing is when you meet someone at a networking event, and then they want to have a follow up 1 to 1 conversation and you're expecting more of that deeper, 'get to know you and your business' conversation, and then all you get is a self-centered sales pitch that really gives me a supermassive ick and really pushes those people to the bottom of the list of anybody that I would ever think to refer to. And it really is worse than a cold call, and cold calls are a concept I'm completely skipping over in this conversation because UGH. Now, before we really jump deep into the referrals, I want to set aside one thing that people may use synonymously with referrals, but is completely different and that is a lead. A lead isn't a referral. A lead is a name, a referral is a conversation. A lead sounds like, "Hey, I know someone who might need bookkeeping". Okay, maybe that's potential. That's a starting point, but nothing has actually been transferred there.
Molly Beyer: [00:02:58] There's no trust, there's no context, there's no expectation. It's just information. A referral on the other hand, really does carry weight. It sounds like, "Hey, you should talk to Molly. She helped someone I know get clarity on their numbers, and I think she could really help you too". Now we have a reason, a level of trust, and a little bit of borrowed credibility. And if it's done really well, it turns into a pre-framed connection where both people already understand why they're talking. The distinction matters because if view treat leads like referrals, you'll feel like your network is really not working very well, but in reality, you're just being given the raw material and expecting it to be finished. So leads still require energy expenditure, but it's so much more than with a referral. With the referral, there is still the follow up and the discovery, but you're really building that trust from scratch. Referrals do shortcut that process if they're done well. The practical shift starts by getting specific in how to ask your network for the connections that you really want. It's instead of saying, "Send me someone who needs bookkeeping". It instead sounds like, “Introduce me to someone who's frustrated with their numbers and open to getting help so I can actually have a meaningful conversation with them". You're not just asking for more, you're asking for better. And when you start to see that difference clearly, it becomes a lot easier to understand why some connections convert and why some just sit there.
Molly Beyer: [00:04:31] Because it's not about volume. It's about how much clarity and trust are built before the conversation even starts. So let's talk about referrals because even though they're not leads, not all referrals are created equal. In my world of bookkeeping and consulting, I can tell almost immediately what kind of referral I've received. There are three types. There's the vague mention, the warm introduction, and then the pre-framed connection. And only one of these consistently turns into business for me. So that vague mention is something that's like, "Hey, you should talk to Molly. She does bookkeeping". Again, this sounds helpful, but it's really not. There's not that context, there's no urgency, and there's no problem really identified. The person receiving the information doesn't know why they need me right now or what problem I might solve for them, or even specifically why they want to work with me. So it just kind of stalls out. It's just a step above a lead. It'll require maximum effort for me with less chance of conversion. The warm introduction is a lot better. There's something like an email introduction. "Hey, Molly, meet Sarah. She's a business owner and mentioned she's overwhelmed with her numbers". Now we're really getting somewhere. There's context, there's a problem, and there's a reason for the connection, but it's still missing one key piece and that is positioning. The pre-framed connection is where things really start to work.
Molly Beyer: [00:06:00] It sounds more like, "Hey, Molly, meet Sarah. She's been feeling really overwhelmed trying to keep up with her books, and I immediately thought of you because you help business owners get clarity and reduce that stress. Sarah, Molly's really good at helping people understand their numbers without making it complicated." Now that problem is clear. The expectation is set and that value is translated. You've done the work before the conversation even starts. So why does this matter anyway? Well, it's really all about communication and collaboration. If your network doesn't know how to talk about you or what you do in a way that connects to the real problems that people might have, you don't really have a referral network. You have a list of people who like you, and those are really not the same thing. Instead of just asking for referrals, start doing two things. First, teach the people you know how to refer to you. In the next episode, we're going to talk about creating effective pitches that let you quickly and effectively build your external sales force by arming your network with everything they need to know how to successfully refer to you. Second is to model it in how you refer to others, because people copy what they see more than what they're told. I'm often called a super connector, and that really is only because I focus a lot of energy on building solid relationships, and part of how I model that is in the way that I make connections to my referral partners.
Molly Beyer: [00:07:28] I usually will create an email connection, and I have a specific format that I use for this. So here's sort of a fictional example of that. This email is going to be a connection, and the subject I'm going to start is connection for you, Shea and Taj. And here is the body of that email.
[00:07:49] Hey Shea and Taj, I'm connecting you as potential referral partners. I'm always looking to introduce strong values aligned professionals, and this feels like a great fit. You both work with similar types of clients and share a focus on building strong, trust based relationships. Taj is the owner of Taj Financial Solutions, working closely with business owners with a single income stream. Taj has a really thoughtful, proactive approach to helping people protect their finances, plan ahead and reduce risk. What I appreciate most is how clearly Taj communicates, and how intentional they are about making sure people truly feel or truly understand their options in managing their money and protecting their family and their legacy. Shea is the owner of Shea Tax Solutions and specializes in tax preparation with a strong focus on tax planning, Shea does an excellent job helping clients gain clarity, stay compliant, and reduce their tax liabilities to keep more money in their business and their family. I've consistently seen how thorough and supportive Shea is, especially with working with clients long term. Happy connecting.
[00:08:55] Where I referenced the businesses in these emails too, I also hyperlink the website into their business name so that it's super easy for them to find each other online before they connect directly as well. So a connection like this really does for very specific things. First, it increases your conversion success or the other person's conversion success as well. And it increases those rates by nearly four times over other marketing channels because they are built on existing trust. A well-managed, warm introduction like this also sets clear expectations and increases the likelihood of a productive business outcome. Third, you're really building trust through demonstrated reliability and integrity as you're putting your own reputation on the line to vouch for this colleague. And finally, you strengthen your network because every connection made creates two people who appreciate you, and you also expand your own referral network in the process. So remember, a good referral doesn't feel like a sales pitch. It feels like, "Oh, this is exactly what I needed." And that doesn't happen by accident. It really happens by design.
[00:10:02] Thanks so much for hanging out with us today. We would love to hear more feedback on today's episode, as well as any requests for future content. Drop a comment or suggestion and join us next time for more frank and holistic conversations on the basics of business. Please also like, subscribe, or follow so you never miss an episode. And until next time, I am Molly Beyer and this has been The Ambiguous &: Business Basics and Beyond. Have a wonderful day!