Business Networking – Working with Referral Partners
A network consists of connecting lines which run in different directions. Crucially, a network—especially a business network—ceases to be a network if there are no connecting lines. Creating and maintaining good lines of communication, in all directions, is as important as developing contacts. We could say instead that there is really no point developing contacts unless good lines of communication are established and maintained.
– Quote courtesy of BusinessBalls.com
We all understand the importance of networking. Third-party recommendations are a powerful way to generate new business, and business networking is one of the most effective ways to get those referrals. But like any new business development stream, networking produces the best results when there’s a strategy involved. It’s more than just attending an event or shaking a few hands; it’s about making real connections that can benefit both parties.
So, how do you turn attending a breakfast, lunch or dinner event into a lead generation exercise? One thing is for sure: you’ll have limited success if your focus is on selling to the room. Instead, it’s far more beneficial to put in the time and effort to build relationships. As with anything, you’ll reap what you sow.
What Happens After the Event?
After a networking event, do you cultivate the relationships you’ve started? Do you follow up with 1:1 meetings? And, more importantly, for what purpose? Over the years, I’ve had countless 1:1 meetings with some fantastic people, but here’s the rub—without a clear goal, many of these meetings were well-intentioned but led nowhere. Like me, you may have walked away with the best of intentions but no real idea of how to help each other.
Then, there are the meetings that turn into full-on sales pitches. Let’s be honest—nobody likes being sold to and those encounters rarely lead to fruitful business relationships.
I’ll admit, I was beginning to think 1:1 meetings were a bit of a dead end.
Enter the Referral Partner
That all changed when I met a fellow business networking delegate who would become my first referral partner. Three years later, we still refer business to each other—a perfect example of how networking, when done correctly, can lead to long-lasting, mutually beneficial relationships.
What is a Referral Partner?
A referral partner is another business that shares the same target market as you but isn’t a direct competitor. They may offer complementary services or be in a completely different industry. The key is that they can recommend your business to their clients, and vice versa. This is a reciprocal relationship—you refer business to them and they do the same for you.
However, it’s vital that your business ethics and practices align. When you recommend someone, you’re putting your reputation on the line. It can take years to build a good reputation, but only seconds to lose it. That’s why you need to be selective when choosing your referral partners.
How to Find Referral Partners
So, how do you go about finding good referral partners? Here are a few steps to get you started:
- Identify Your Target Market
Begin by thinking about your target market. Who are they? What do they do? What makes them good clients for you? Build up a clear profile of your ideal customer. Avoid vague responses like “anyone who…” Instead, focus on specifics. Look at your current client base—the ones you love working with. What do they have in common? - Consider Potential Referral Partners
Once you’ve defined your target market, think about which other businesses serve the same audience. What industries are likely to have clients who could benefit from your services? These are the businesses that would make good referral partners. - Use Your Network
Now that you have a list of potential partners, it’s time to use your existing network. When attending networking events, keep an eye out for businesses that match your list. If your regular group doesn’t include anyone from your ideal referral partner industries, ask the room for connections. Explain why you’re looking to meet people in those industries and you’ll often find that someone knows just the right person. - Set Up 1:1 Meetings
When you spot a potential referral partner, set up a 1:1 meeting to get to know each other’s businesses. Be selective—this isn’t just about finding someone who can refer you; it’s about making sure they share your ethics and standards. You want to feel confident that when you recommend them, they’ll deliver the same level of service you would. - Build the Relationship
A referral partnership isn’t a one-off transaction. It’s a relationship that needs to be nurtured. Regularly touch base with your partners, learn about their business developments and keep them updated on yours. And, of course, make sure the referrals flow both ways.
The Power of Referral Partners
Having referral partners can transform your approach to business networking. Instead of going to events with the sole aim of collecting business cards, you’re building meaningful relationships that will lead to ongoing referrals. It’s a smarter, more strategic way to approach networking—and it works.
At The Last Hurdle, we believe in the power of building strong referral networks. Not only does it help grow your business, but it also helps strengthen your reputation. By working with partners who share your values, you can confidently refer your clients, knowing they’ll be well taken care of.
Oh, and here’s a personal success story: I met our first two franchisees through networking events. If that’s not a testament to the power of networking, I don’t know what is!
Get Networking – And Let Me Know How You Get On
Next time you attend a networking event, think about who your potential referral partners could be. Approach networking with a strategy—know who you’re looking for and why. And remember, it’s not just about building your contact list; it’s about creating real connections that can lead to long-term, mutually beneficial relationships.
I’d love to hear how your networking goes—let me know how you get on!
Jules White
