The Ultimate Guide to Referral Networking: Ch.7

 

Chapter 7 The three circles of location

There are three ranges or scopes of business; they are local, national, and global. Each business is defined by its location, and each location defines the type of business. For instance, a self-employed plumber will most probably be local; a plumbing company might be national, a construction plumbing contractor or a high-rise plumbing consultant might be global. Invariably, the product defines businesses they sell, which can be a service or a tangible item. When producing a tangible item, then global borders are only restrictions set up by your supply chain. When providing a service, if it requires in-house activity, then you are restricted to location, this restriction is part of your business model, and if your service can be offered digitally, then you can be in every location globally online.

Deciding on your location is part of your corporate vision, and your corporate vision is partially based on your budget. This means that you must decide where you want to reach, and build up a step by step process to reach it.

In the instance of a self-employed plumber, it means either defining yourself locally or deciding to go nationally with expansion programs set into specifically targeted milestones. If you are an accountant, you are not limited to location; you can go online and become global.

Once you have defined your reach and location, it is time to build up your referral network to help increase your workload, increase your reach, and realize your expansion.

Local

Setting up a local referral network requires more real-life activity then virtual.

Local referral networks are personal and require a lot of advertising using popular local methods that can include posters, billboards, signposts, printed paper adverts as well as advertising on local cable channels. A website is necessary to support all marketing methods. Setting up a local referral network requires creating partnerships and friendships with retailers, service providers, and taxi/rideshare drivers. Family, school childhood friendships, and happy clients make up 95% of the referral network.

National

Setting up a national referral network requires equal real life and virtual activity.

National referral networks require a bit more planning since they require logistics, partnerships and structured referral networks. The use of forums, groups, conferences, and trade shows are all part of the national referral network. Online marketing replaces local, and referral networks become more complex as you add acquaintances and professional associates to the list.

Global

Setting up a global referral network requires more virtual than real life activity.

Global networks can be both the easiest and the hardest to set up. It all depends on how you approach them. If you are a freelancer providing a global service, it can be quite easy to create a “virtual” referral network. If you are an academic, or profession that requires recognition to gain clients, then you will need to participate in a lot of online forums, discussion groups as well as support them with global conference participation and attendance. Artisans and Manufacturers of products can skip the local and national stages and just concentrate on a global network using online e-shopping techniques. Their referral network is based on customer reviews and satisfaction as well as online marketing techniques for branding and popularity.

Deciding which location is best

As we mentioned at the beginning of this article, location is product based, and products set the location, deciding how to will lead you on different paths.

Let’s look at an artisan creating cultural products. Their target can be local, if they live in a tourist-rich location, as well as global if they make an online presence. They can skip the national market since their global image will cater to this section of the market. Their referral network will require connections with hotels, restaurants, tour guides, taxi drivers, rideshare and other gig economies as well as maintain a website, e-shop presence, and blog. They need to build up a list of satisfied customers too, who will send more clients to their site or physical location.

Freelance writers will choose a different approach, concentrating only on the global location. Building up a long list of profiles in various freelance sites as well as creating a social media presence and aim to use satisfied clients to help promote their services to others. Writers will also use local connections such as family and friends to reach local businesses requiring services, without having to rely on the internet to reach them. However, online marketing and referral networks are the keys to writing professionals.

Software development is global, in fact, this is one of the few professions that is purely global, and only global initiatives should drive a software developers vision. This does not mean you should not find local clients, but you have to factor in “off the shelf” solutions that put “bespoke” solutions out of business. If you develop third-party add-on’s, you are automatically aiming toward a global market. If you are seeking a consultancy or local software coding position, then local is better than global, but that means you need to bolster your referral network with HR specialists that can help you find work.

Manufacturers and producers of products that want to grow from a national level will need to take it step by step. Since logistics, as well as production processes, need to grow appropriately. That is why it is best to start out nationally and after being branded and known, set up a global network. Since manufacturing is a production intensive process and depending on the product a regulated and standardized process, going global immediately is a mistake. One of the biggest mistakes a “local” or small manufacturer will do it try to sell more than they can produce or distribute. The best referral network will aim for national recognition and growth first.