Do You Tip A Massage Therapist Who Owns The Business Tip, Lead, Referral – What’s Best?

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Tip, Lead, Referral – What’s Best?

One of the best ways to get your business partners to send you business is to send them business. This can be in the form of a tip, lead or referral. But which one is better at supporting members of your business network? Sometimes people get confused about the differences between them, so let’s define them first.

A tip is a helpful tip. Clues come from what you see or hear.

A lead is a sign of a potential opportunity. Leaders typically require a low-level discussion with the prospect about a wish, desire, pain point, or grievance being experienced.

A referral is a recommendation to consult with a specific person or company. Referrals require you to dig deeper into a prospect’s problem and then make a recommendation to connect with someone who can solve it.

Based on these definitions, you can see that a referral requires the most work from a business partner to close a deal, and a referral requires the least amount of work. Let’s look at a few examples.

Example 1: Referral of business to a real estate agent.

Hint: I heard that Joe, who lives around the corner, wants to sell his house.

Lead: I talked to Joe and he said he doesn’t have a real estate agent.

Referral: I spoke with Joe about real estate services. He asked me to connect the two of you via email.

Example 2: Referral business to a massage therapist.

Hint: I noticed my neighbor Brenda rubbing her back while gardening.

Lead: I talked to Brenda about her back and suggested a massage therapist. He thought it was a good idea.

Referral: I was talking to Brenda about your massage therapy practice and she wants you to call her at home tonight. Here is his number.

Example 3: Referral of business to a hypnotherapist.

Tip: My brother has been a lifelong nail biter and has tried many things to quit.

Lead: I talked to my brother about hypnotherapy to get over his nail biting. He has never tried it before and is interested in learning more.

Referral: I have spoken to my brother about your hypnotherapy practice, but his questions I cannot answer. He asked for your card and said he would call you this afternoon.

Most formal business networking groups recommend that their members only refer other members, not tips or leads. As you can see from the definitions and examples above, a referral is the granddaddy of the three because most of the work is already done and your business partner just needs to write the invoice. Of course, if you know someone well enough to engage them in a conversation about their problem and recommend solutions, you can create a referral letter for your business partner. And referrals generate more business than tips and leads.

But don’t discount the power of a tip or a lead for some people in the referral group. I have a sign maker on my team who told me if I see a bad job sign when I’m driving by, pull over, call him and tell him who the sign is for. He has such high sales success with cold calling that he just needs a referral. The more time you spend with your referral friends, the more you will learn what works best for them. And in turn, they’ll learn about the best types of prospects to send your way.

Happy searching!

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