If you want to see my LinkedIn profile, click on this button:
How Well Are You Paying Them?
Unlike perhaps a career sales professional, your best referral sources are probably motivated enough to sell your products and services on essentially a volunteer basis. Why? Because by servicing the people they refer, you make your referral partners look good in the process.
Whether a commission is earned or not is irrelevant. You have a sales force to manage. Don’t let mutual admiration get in the way of a smart compensation package. Just because your referral sources are volunteers, don’t think for a second they don’t appreciate being compensated. Maybe, just maybe, they’d appreciate referrals from you as well.
Have you “paid” your referral partners lately? Are referrals flowing only one way? Based on how you “compensate” your referral partners, how motivated are they to bring you more referrals?
Unless you can feed the relationship with your referral partners, it is not likely to support you or your business over the long term. There are many ways to feed a relationship, but reciprocating with good referrals models the behavior you are trying to encourage and creates a cycle of goodwill.
Think for a moment specifically about the three people you consider your strongest and most valuable referral sources. Ask yourself these questions:
- Have you “paid” them in the last 30-60 days? If not, how realistic is it to believe they are working hard for you?
- Do you pay extra to those who generate the best results? If not, what motivates them to continue performing at such a high level?
As the manager of a volunteer sales force, evaluate your own compensation system. Like any sales manager, your challenge is to build and motivate your team. The goal is never to accumulate as many referral sources as possible. The goal is to maximize the number of referral sources that you can feed, support, and manage. This takes effort on your part.
Feeding your referral sources is an investment strategy. Invest wisely, and you’ll find that the best fuel for reciprocity is a commitment to relationships that benefit all parties.