NURTURING YOUR REFERRAL SOURCES
(November/December 2002 Issue)

You may have heard this story, but it's worth repeating:

A fisherman is out on the water when he hears a thrashing sound by his boat. When he looks down, he sees a snake with a frog in its mouth and, without thinking about it much, acts on instinct and rescues the frog. But then, he feels sorry for the snake-after all, he just sent its lunch swimming away! So he takes out his handy hip flask and tips it just enough to give the snake a little brandy. The snake seems content with this and swims away. A little while later, the fisherman once more hears a thrashing sound by the boat ... and the snake is back, with TWO frogs in its mouth.

The moral of the story? Reward someone's effort, and you'll get more of that effort in return. Positive reinforcement, systematically applied, will increase your business because you can increase a key behavior: giving you referrals. Don't worry, you won't have to buy brandy for everybody! It's a fact that 90 percent of your database contacts will never refer a soul; the 10 percent who do refer people, though, will refer more than one. These 10 percent are a valuable resource, so nurture them carefully.

Since you can't nurture what you can't see, the first thing you want to do is identify the people who are "live wires" by means of careful record keeping. If you keep your log book close by the telephone, and remember to ask "who referred you?" early in the conversation, you'll soon see who's out there spreading the word about you.

Once you identify who these people are-we'll call them your "referral sources"-publicly thank them in your newsletter. Now, you might not think it's a big deal for people to see their names in a "dinky little career newsletter," but, incredibly enough, it is. If you doubt this, just ask any community newspaper editor: people love to see their names in print, and they'll be glad to help you out in exchange for those few minutes of glory.

Many of those prospects will come in for a CAP session. These are special referrals, and your referral source should be acknowledged in a special way.

In this case, just like your mom always taught you, thank-yous are important -- so invest in some really nice stationery and take the time to hand write a thank-you note. In this day of e-mails and computer-generated everything, your handwritten note will mean even more. And make sure you go for the really attractive stationery or note cards; don't use your business letterhead -- it's too formal for the kind of note you're going to write.

Keep the letter simple. You can say something like, "Thanks for referring _______ to me. We had a good meeting." Then finish with some compliment about the prospect that's not confidential information; it's a simple thing, but it will make someone's day.

For a gesture with even more impact, have a card ready and envelope addressed to the referral source. (Address it in the 10 minutes of the CAP session where you're writing up the "What's working," "What needs attention," and "Next Steps"). Give it to the prospect/referral and have him/her put comments on the card about the value he/she saw in the session. The client then licks the envelope and seals it, and you send it. In effect, the referral source gets thanked not only by you, but by the person they sent to you, too! That's powerful.

Of course, a phone call is a time-honored way to say "thanks"-just remember to keep the focus of the call on "thank-you." Tempting as it is to turn the call into an OBEC, blending the two purposes of a phone call like that is too tough a line to walk, and you don't want to blunder over it. Besides, by keeping your attention on nurturing the client, your actions are a powerful OBEC message in and of themselves.

If your referral sources are particularly zealous on your behalf -- say, they refer two or more people -- reward them a little more tangibly. Take them out to lunch, get them a gift certificate to a special place... the more individually chosen, the better. Once again, keep attention on the individual and reward them in meaningful ways.

Notice I don't say "expensive" ways, and I don't suggest such things as commissions or finder's fees as tokens of appreciation. Fees and commissions are meant for people with whom you have a different form of professional relationship. [F.Y.I., you might want to give a finder's fee to a resume writer who refers to you; or another career counselor.] But mostly, you want your referral sources to feel they can do this voluntarily, not that they've been taken on as some kind of partner.

Remember, too, that referrals can go both ways. When you do your OBECS, especially, remember to not only ask that prospects/clients refer people in "career distress" to you, but also think in terms of what kind of "distress" your client or contact's business can solve. Chances are that the kinds of people who'll give you referrals have more than a bit of the entrepreneur about them anyway, so be sure to ask, "Who would be good referrals I could send YOU?" They'll be tickled to know you're willing to help them in this additional, tangible way, and that kind of reciprocity ensures that you both can continue to help each other grow.

Rewarding referral sources is a delightfully fun part of your private practice. Everyone feels good. The refer-er, the refer-ee, and you. So, go ahead ... Enjoy this!

Jack Chapman is author of:
Negotiating Your Salary: How to Make $1000 a Minute
He is a career consultant in private practice and runs ongoing support and training teleconference sessions for career consultants in private practice.
He can be reached at 847-251-4727 or jkchapman@aol.com.