What Makes Referral Groups Work? - Steve Sweeney

The Referral Guy
S4 Episode 3
Episode Title – What Makes Referral Groups Work?

​Introduction
This week’s show will cover some different aspects of referral groups that are often hidden from the gaze of outsiders. If you notice some of your questions are receiving less than forthcoming answers on these topics… Beware! Most likely it means they’ll do anything to get members and that mindset is not in anyone’s interests.

It pays to have the best information to help you make the best decisions about your referral marketing strategy so read on and let’s get you on your way!

Show Objectives
To advise listeners on some of the less obvious aspects of referral groups and why they are important to make the groups work for the members.

What You Need to Know 
Make sure you ask questions about the following topics and get all the information you can. They all have a significant impact on how well the group works for the members.

• The Ownership Structure
  • Franchise.
    • This is a business structure and exists so the franchisee makes money.
    • Franchisees make more money in groups with high member turnover. This is not in the members’ interests.
  • Owned/controlled by a single member.
    • These groups are generally funnels for the controllers business interests.
    • Accordingly, retention will be low as there is insufficient benefit to general members.
  • Member owned with internal management.
    • This means members are managing members. Beware!
  • Member owned with external management.
    • The best option. 
    • Members don’t get involved in discipline or performance managing other members.
    • They are free to concentrate on attracting referrals.
• Leadership
  • Rotating Leadership Team or Single Facilitator?
  • Are the leaders trained?
  • Does the meeting run smoothly?
  • Are goals set by the group?
  • Does President/Facilitator command attention?
  • Members leave because of poor leadership.
  • Selection Committee  
    • Does it exist?
    • Are they selling or selecting?
    • Is there a formal selection process?
    • Will they accept anyone with a pulse?
• Retention Rate
  • The retention rate directly indicates how satisfied existing members are with the product. 
  • Look for a retention rate 70% or above.
  • If retention rate is not monitored… beware.
  • How many apologies were there for the meeting?
    • This can be a red flag!
  • Is there an on-boarding process?
  • Is mentoring available?
  • Does the group support an external charity or cause?
    • This is a feel-good element that helps to unite members.
• Training
  • Is the group trained as a group?
    • Group training bonds the group.
  • Do all members have the necessary referral generation skills?
    • How many referrals were passed at the meeting?
  • Do all members know the group’s expectations/goals/standards?
• Presentations
  • The ability to communicate one-to-many is a rare opportunity so members need to know how to do it properly so they’re not wasting their time.
  • Is training available on how to give 3 different types of presentations – 
    • Business Overview
    • Customer-Attracting Presentations
    • Referral Partner Presentations

What Your Need to Do

• Contact Steve at info@referralacademy.com.au if you have any questions about the information above.
• Understand it is better to know the answers to these questions before you waste your time and money by joining.

Previous Show

Discover Your Natural Referral Partners and Build Your Own Strategic Referral Team

This show walked you through the SRT building process so you could…

• Stop selling yourself.
• Use word-of-mouth referrals to enable your reputation to meet your potential clients before you do.
• Become part of a business community with a specific referral focus.
• Learn from the education and training if you choose.
• Produce your own results.
• Enjoy exclusive marketing rights for your business in your SRT.

Be sure to listen to the podcast and make contact if you have any questions or shoot me an email  info@referralacademy.com.au 

Next Show
Make Your Referral Partner Meetings Pay Off
Referral partner meetings are the birthplace of referrals. However too often they become counter-productive because members do not know how to conduct meaningful ones.
This episode of The Referral Guy, and the two following, will shed light on this critical step in the referral process and give you some tips and tricks that will help to develop your referral generation and attraction skills.

Your Host and Resource
Hey, I’m Steve Sweeney… The Referral Guy.

Being a Specialist Referral Marketing Trainer provides me with wonderful opportunities to help business owners attract more business by referral. This is one of the most cost-effective methods of marketing as it relies 100% on the quality of relationships you have with people in your network. Once trained, your skills last a lifetime and continue to pay dividends.

The Australian Referral Training Academy (ARTA) exists to teach business owners and sales professionals the art and science of attracting referrals and helps them build their own Strategic Referral Teams (SRT)

Shoot me an email if you’d like to learn more info@referralacademy.com.au

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