Beware the Referral

The Desert of Arizona
Partly Cloudy 64 Degrees – 6:16 a.m.

The media platform turns a lot of generally accepted business principles upside down. Today, I’m going to highlight one example.

The referral.

For most businesses, referrals are supposed to be the Holy Grail of business. After all, who wouldn’t want to be swamped with a steady stream of incoming referrals?

Here’s the issue:

When you build your business on the back of a media platform, you have to treat referrals a bit differently. You have to build a system that works in the context of what you already have. If you don’t, here’s what tends to happen:

A new prospect enters your universe and begins to interact with your media platform. She gets the newsletter, then another one, then another.

Over time, she begins to see the unique value you offer to the marketplace. So she reaches out and you begin to work together.

Simple enough, right?

Well, then the client tells her colleague about you.

And then that friend reaches out to you and basically says,

“My friend says you can do amazing things… so let’s see your song and dance. Go.”

This is a perfect setup for you to LOSE. Actually, you lose, the prospective client loses… everyone loses. So thanks, but no thanks.

Here’s the key: It is impossible to transfer the magic of the media platform from one person to another. The magic must be built on an individual basis.

Referrals must be treated differently in the world of the media platform. It works against you and them to have them “cut to the front of the line,” just because of the relationship you have with a client.

This doesn’t mean referrals can’t be great. And it doesn’t mean you shouldn’t be thankful for them. But you want to think about the appropriate way to deal with them so the prospect is well served, your existing client relationship is enriched AND you don’t go crazy.

Who would have thought?

But I live this, so I know.

The first thing to remember is that your system is there for a reason. So use it. Don’t shortcut it.

I do this every now and again and usually regret it.

I’ve learned a lot of “secrets” about using media platforms to attract prospects and clients. Some things, like this referral issue, are pretty counterintuitive. I’ll be sharing more of them here.