This site is best viewed using Mozilla Firefox browser.

Business

2011-11-18 10:39:03

Value of referral groups

Q: A fellow business owner suggested that I join a referral group. Can you tell me about what they are and the value of such groups and what kind of time investment would be required for it to be of benefit?

A: Referral groups all work on the premise that a core group of individuals commit to promoting the goods and services of others within the group. Most times, the groups are divided into chapters, which are limited to one professional from each service area so there is never a conflict as to which Real Estate agent, hairstylist, or contractor to promote for example. Groups exist in several different formats with different levels of structure, offerings and commitment. Some groups are primarily online and meet once a month or quarter to exchange business cards and brochures for distribution, get updates, and share ideas. Others meet more frequently but may have more or less structure, may or may not be a part of a larger parent group and may have varying amounts of support services. There is a huge advantage to being part of such groups as positive word of mouth is often your best source of new customers or clients. If the group offers other services such as guest speakers, workshops, or training in such things as public speaking or networking, a member may find they there are untapped techniques or markets that they could leverage. Finally, one of the most important aspects of joining a referral group is that it allows you to be proactive in the success of your business. When you have the opportunity to share the worth of your good or services you remain positive and enthused, which is something very attractive to potential customers.