I run a telecommunications company. There are some big established players with multi-million dollar marketing budgets. My company is not one of them (yet.) Given I don’t have these huge budgets I need to look at different ways to grow my customer base.
My main source of new business is referrals. I am a member of BNI, and BNI members live by the motto- “Giver’s Gain.” when I look at giving referrals to members of my chapter, they will seek out referrals for me.
I’m not going to lie, it’s easier for me to give referrals to some members of my chapter than others. It’s easier for me to find referrals for some businesses than others. I work in a b2b focussed business. My target clients are other businesses. It’s easiest for me to find referrals for other businesses that target the b2b space – I can find referrals for accountants, lawyers, insurance brokers, Printers, Signage companies, business coaches – so on and so forth.
I call them Alliance Partners. In BNI they are called power teams.
The question many have is “well what happens if I don’t already have an established network?” The answer is simple – you build it. The easiest way to do it is to join BNI. But even if you are in a BNI Chapter there are things that you can do. Chances are that you will want to grow your BNI chapter.
I am going to make some suggestions below on how you can grow your network and build the Alliance Partners you need to build a referral based business. I need to reiterate again the understanding that in order to get referrals you have to first be prepared to give referrals. If you are not helping others grow their business you will find that you are unlikely to receive and significant referrals in return. The power of reciprocity is important.
Here’s how you can grow your network – building alliance partners or power teams. (This is basically the process I use to invite more members to my BNI Chapter but it works whether you are starting out and trying to build your own alliance partnerships.)
Pick your alliance partner industries – It’s not for me to tell you who your alliance partners should be. But the best way to basically decide those who should be alliance partners is to look at those businesses that are targeting the same customers that you are whilst not selling competing products. I’ve used some examples above that work in my business – they are all other b2b customers but they are not selling the same products that I do. You should make this list as big as you want, but you should concentrate on only 2-3 industries at a time. Remember, it’s about creating in depth relationships – quality not quantity.
Reach out to other businesses – Once you’ve picked your alliance partners and then picked the two or three industries you will focus on first it’s time to come up with a list of people to contact. The best way to come up with this list of names is through Linkedin. (How to do this will be the focus of a more indepth article on here later.) If you can’t get a list of individuals to reach out to on LinkedIn, then the yellow pages is a great place to start. The benefit of LinkedIn is that you can see if people in your network are already connected to that person you are trying to reach out to.
Write a letter of introduction (and ask for an introduction) – If you are reaching out to people through LinkedIn and asking for an introduction, make it easy to get an introduction. When asking for an introduction, you should right a forwardable referral email. This article explains what I mean pretty well.
Identify the Industry Challenges – Like I’ve mentioned above, success comes through “Givers Gain” and the power of reciprocity. If you go out of your way to identify the challenges facing those in the industry you are trying to network with then you will boost your chances of finding a way that you can help these industries. If you help them then they will feel that they are honour bound to help you.
Persistence and Follow Up is Key – It’s important to remember that not everyone will recognise and understand the power and value of networking. Not everybody will want to create strategic alliances. This does not mean that you should just give up. If one printer doesn’t want to work with me there are hundreds, if not thousands, of printers out there who I can work with instead. It’s also important to ensure that you foster relationships and build depth. Superficial relationships do not breed long term referral success. You need to catch up regularly with your Alliance Partners.
Track Your Efforts To Make Sure Your Are Effective – I use a Google Apps Spreadsheet and Zoho CRM to track my efforts – from listing who I have contacted (so I don’t end up Spamming businesses) through to making notes and following up with those who have contacted me back. It is almost a sales process – I make a list of suspects, I move some of them from suspects to prospects to part of my network. I have my list of businesses and individuals, and then I make notes of when I have contacted them and whether they are receptive to further interaction. Once I have deemed somebody moves from suspect to prospect to contact they get placed in my CRM. With my CRM I make sure that I keep in contact with everybody in my network regularly – some more often than others depending on how many referrals I can give them and how many referrals they give me.
Talk to More People On The Phone & In Person – It’s important to bring your online conversations offline. You need to set phone meetings and in person meetings. I try to aim for 15 conversations with new people each week on the phone and 2-3 in person meetings. The best way to truly build relationships is through meeting in person, learning how to find referrals for your Alliance Partners and then educating them on how to find referrals for you. in BNI, they refer to these as One to One Meetings.
Always be following Up – The Follow Up is key. If you don’t follow up you can’t expect your relationships below. A business person that follows up is seen as attentive and professional. You need to follow up after every phone call and every face to face meeting. You need to set a follow up schedule. Make sure every follow up activity creates a win-win situation.
Building win-win relationships and Strategic Alliances is by far and away the best way to grow your business. This is a process that works for me and that I am sure works for thousands worldwide. It has helped me grow my network and has helped me get more customers.
I’m not going to lie. It’s not an easy strategy but it’s an effective strategy. If you follow the tips I have mentioned above then you should see success in your own business.