14 Rules Of Business Referral Etiquette
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14 Rules of Business Referral Etiquette
Summary
Building relationships is a vital management role in business, and referrals are a key method to do so. They involve various stakeholders like banks, attorneys, employees, and peers. While referrals often begin with good intentions, they can sometimes fail due to lack of proper handling. This guide offers tips to ensure successful outcomes from referrals.
Article
The art of building a business is deeply rooted in relationships, and referrals play a significant role in forging these connections. When managed well, referrals can greatly benefit your organization. Unfortunately, poor handling can backfire, damaging both reputation and relationships.
Imagine a connection gone wrong, like when we referred an interested business peer to one of our clients, only to have it result in an unprofessional encounter. It led to discomfort and an apology, threatening our reputation. This highlights the importance of managing referrals with care.
Referrals typically involve three parties: the seeker, the provider, and the connector. Each role has specific responsibilities to ensure a successful outcome.
For the Person Seeking Something
1. Respect Relationships: Acknowledge and appreciate the connections others have established.
2. Stay Professional: Treat the referral as an opportunity that still requires your effort to build the relationship.
3. Honor the Referrer: Your behavior reflects on the person who connected you.
4. Mind Your Language: Keep communication clean and respectful.
5. Maintain Ethics: Ethical behavior earns trust and respect from all parties involved.
6. Check Your Ego: Credentials and referrals don't exempt you from showing courtesy.
For the Person Providing Something
1. Deliver on Promises: Only commit to what you can confidently fulfill. Be honest if you can't help.
2. Address Mistakes: Acknowledge errors and prioritize the interests of both parties.
3. Exceed Expectations: Make the referrer look competent through your actions.
4. Keep Comments Positive: Avoid speaking negatively about the referrer or the receiver.
For the Connector
1. Know Your Referral: Ensure you're introducing trustworthy and compatible parties.
2. Focus on Relationships: Don't expect reciprocal referrals; value the strengthened relationships instead.
3. Introduce Professionally: Set a respectful and professional tone from the outset.
4. Step Back When Appropriate: Allow the relationship to thrive independently once established.
Referral etiquette is straightforward: act professionally, respect others, and cultivate relationships with integrity. Apply these principles, and you'll enhance both new and existing business relationships.
David and Lorrie Goldsmith
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