Episode 1226 – Are Referral Groups Really Worth It?
In a recent coaching call with the Next Level clients, Mike explored the topic of referral groups and their effectiveness in growing a business. The conversation was so packed with valuable insights that we thought it would be beneficial to share it with Cleaning Nation. Here’s a summary of the key points discussed, which can help you decide whether joining a referral group is the right move for your cleaning business.
Celebrating a Win
Deborah kicked things off with a celebration, sharing that she had joined a referral group. She found the experience rewarding and recommended others in the community to seek out similar groups. These groups only allow one person per industry, encouraging members to refer each other to potential clients.
The Ups and Downs of Referral Groups
Mike offered his perspective on referral groups, noting that while they can be beneficial, there are caveats. He pointed out two major pitfalls: losing interest after initial excitement if leads don’t materialize, and the group not containing the ideal target market. He emphasized the importance of being in groups where members are likely to be perfect prospects for your business.
Focus on the Right Prospects
Mike advised being strategic about the types of referral groups to join. He illustrated how zoning laws often group similar types of clients together in neighborhoods, making targeting more efficient. He also highlighted the importance of groups being populated with decision-makers, typically women for residential cleaning services, to maximize business opportunities.
Commitment is Key
Mike stressed the necessity of going all in if joining a referral group. He shared his experience with the Entrepreneurs Organization (EO), where his deep involvement, including serving on the board, yielded personal satisfaction and valuable connections. However, he also acknowledged that while he enjoyed the group, it didn’t directly lead to significant business growth. Thus, for those considering referral groups, he advised a full commitment to get the most out of it.
Making Smart Choices
The discussion wrapped up with a practical approach to using referral groups effectively. Both Mike and Marty, another participant, agreed on the importance of focusing on high-value relationships. Marty suggested visiting multiple groups to gather contacts and then choosing the most promising ones to follow up with. Mike, however, preferred building deep, long-term relationships in a single group that closely matches his target market. The key takeaway was to be intentional about time and effort to ensure a positive return on investment.
Conclusion
Joining a referral group can be a strategic move for your cleaning business, but it’s important to approach it with clear goals and full commitment. Ensure the group aligns with your target market, and be prepared to invest your time and effort to see meaningful results. Whether for business or personal growth, the right group can provide valuable connections and opportunities.