The Ultimate Guide to Referral Networking: Ch.14

 

Chapter 14 Quality and Quantity; the Referral Utopia

If you have a linked in profile, then you most probably came across the acronym L.I.O.N. This stands for Linkedin Open Networker. This is a group of people that are not interested in the quality of their network; they are only interested in quantity. This came out of a response to Linkedin’s policy that members should not link to people they do not know, which is sort of defeating the object of the site. However, it did become obvious when people started to amass tens of thousands of links and started to mass mail them, or create mass groups without the linked member's approval. The only exception to this rule are “influencers” these are people in positions that make others want to be linked to their knowledge, such as CEO’s of large companies, Educators and Opinion makers, or Politicians.

Bottom line, a true network would only contain connections that have one of the following attributes (categories) to the linked profile:

1.      They are family

2.      They are personal friends

3.      They are school/college friends

4.      They are co-workers, employers, or employees

5.      They are peers in the same profession

6.      They share the same professional or personal interests

7.      They have a business relationship

8.      They are HR recruitment personnel

9.      They are satisfied customers

These are the types of people you want in your referral network, and anyone that does not fit into one of these categories is not an immediate requirement to your network. A good network is based first on quality and then quantity, where the quantity aspect will grow out of the quality base. (It rarely happens the other way.)

The Growth of Quality

When you start to build your initial referral network list, you should categorize everyone you know in the above list of 9 categories Depending in your age and experience; you will find that the network populates in preference as the above list of nine is presented. Where family and friends are the starting blocks of the network, and professional connections take up the second level leading to the third level being taken up by work-related friends, the final level is satisfied customers.

Over time, as you gain more experience, the categories shuffle around, similar to shifts in a Pareto table. You will find your professional connections growing more than your family and friends lists and your work-related and satisfied customers coming in second place. This does not mean that the categories are shuffling their importance, it just means that they are growing in number.

The satisfied customer list will grow differently when you are a service provider or a product manufacturer or retail seller. The service sector has fewer clients, while the retail business can have millions. The type of referral differs between the two, where a service referral network is based on a customer’s experience and will provide a steady growth line. The retail customer will either be a returning customer and write a good review, which will automatically generate more clients and the growth pattern will increase and decrease according to your marketing capabilities.

The family list will remain static, as it invariably does unless you marry into a tribe.

The professional network will grow according to your participation in your profession. Forums, conferences, and publications will add to your popularity, as well as increase the number of peers you meet.

The hobby section will grow if you cater to hobby issues (chess, yachting, cooking, etc.)

Critical Mass

There is a moment in every referral network where you reach that critical mass point that either tip to automatic referral or implodes. If you are a retailer, then your network will most probably reach an automatic infusion critical mass, and your products will be bought through market inertia created by your marketing and customer satisfaction levels.

It is rare that a service network reaches an automatic infusion critical mass. Usually, when a service network reaches critical mass it is due to overpopulation, and the individual loses control over their network, mismanaging connections and taking on too many jobs. The fall out is an implosion of quality, where the clients end up being frustrated and leaving the network or providing negative feedback.

The Quality Quantity Ratio

Finding that special ratio, where the network works for your benefit, is the key to a successful referral network system. The ratio is very simple; it is based on your ability to provide a quality service 100% of the time. Even if you expand your services, increase your exposure, and use partners or add employees, the network should grow to accommodate the changes in size.

The same goes for a retailer, where the network needs to be supported by an efficient CRM. We discussed the critical mass issue favorably with retailers, however, if the CRM is bad or lacking in strength, the effect will also lead to implosion.

Bottom Line: Maintaining control over your network is key, it requires skill in knowing how to categorize your network and how to manage them as you grow.

Quantity is not quality, and good quality will always lead to increase in demand for quantity.