We all know that referrals are the number one way to grow our businesses. The most effective way, the most desired way, and the cheapest way to gain new business is to have happy current customers who let others know how awesome you are.
In a classic business model, one of the things that never happens is referral from noncustomers, those who have yet to use your product or service. I mean, how could they, right? Without social media, if you asked me about finding a pool cleaner and I didn’t own a pool, what could I say? Google it?
Social media has changed this by opening up the avenue I call peripheral referrals—referrals from people who have not yet used your product or service but who have gotten to know, like, and trust you online.
Now, when someone asks me if I know a pool cleaner, even if I don’t have a pool, I go to my online community. Because social media is all about conversation, we connect with people about many things. So I may know someone online because we’re spoken about parenting, or travel or (something funny about music), but it turns out they are also a pool cleaner. Now I know someone in the industry online even though I’ve never needed their services. I can also tweet out to my followers for recommendations.
Social media has allowed me to get to know people in countless industries whose services and products I have yet to use myself — but whom I would still give a peripheral referral.
The more people you know, and more importantly, the more people who know you (even before they have been your customer), the greater your social network. The old idea of focusing on talking only to leads, or even referring to people as leads, is dying. People in social media aren’t leads; they are people. They are connections. And when these connections grow, others get to know, like, and trust us, even without ever having used our products or services.
Peripheral referrals are so easy to give. They aren’t highly committal, like other kinds of referrals. Today, people are usually hesitant to give referrals, especially publicly. You need to lend your name, credibility, and trust with a referral. But a social referral isn’t like that. You can say, “I’ve never used this company before, but I know them online and Chris over there seems like a great real estate agent or a great guy. Why don’t you read their stuff and get to know them first.” You aren’t on the hook for the referral, but you were able to help an online friend who was looking for a connection by suggesting someone. Win, win, win.
The larger and more engaged your social network is, the better your referral network is. This works both ways. Not only do we gain referrals and grow our own business, but we can also access the network when we are the customer looking for products or services. When I need to find someone to work with in business, I don’t go to the Yellow Pages and I don’t Google the term; I tweet about it. I ask my network for trusted referrals. What is the value to you in building a community where you can ask advice of people you trust—both personally and professionally? What is the value in not wasting your time and money on a product or service because you asked first and were given recommendations online? I think trusted referrals alone are worth all the time and energy spent engaging online.