Like fine wine, referral networks get better over time.
After 40 years in business — working in almost every industry you can imagine — I haven’t found a better way to connect with ideal clients than by referral.
You get better at understanding which problems your connections solve best, and who they can help most. Meanwhile, you also get better at facilitating introductions and handoffs between the professionals in your network.
Understanding the True Value of Referrals
If you define a good referral strictly as a connection that leads directly to a new business deal or client, you might be missing the true value of networking.
There are two key types of referral connections that grow your business and elevate your authority:
- Direct Referrals are the ones we’re most familiar with. You connect someone directly to providers in your network who can meet their specific needs for a service or product. When you make a direct referral, you’re saving your connection both time and energy by pointing them in the right direction to solve their immediate problem.
- Indirect Referrals involve connecting someone to people in your network who might have access to the providers they need. When you make an indirect referral, you’re opening doors to potential solutions. By becoming a go-to person for indirect referrals, you establish yourself as a valuable resource and a connector within your network.
For example, I had a client recently seeking a book contract at the moment. After researching publishing houses within her niche, she found several that would be a good fit for the book she was proposing. However, there was one publisher on the list that she didn’t know much about.
After inquiring within her own network, she reached out to me to see if I had any contacts that could help her. Turns out, I did know someone. Someone I met several years ago when I was volunteering with a ministry. By connecting my client with this individual, I helped her take a step closer to her goal of meeting someone at the publishing house.
While these sorts of connections don’t always pay off, this one did. My email introduction led my client straight to a decision-maker with the publisher. They loved her book idea and as of the time I’m writing this, the publisher had her manuscript under consideration for publication.
The Art of Referral Partnerships
Productive referral networks are equal parts art and science. The science piece is simple math — the bigger your referral network, the greater your chances of making great connections. The art, on the other hand, is nuanced.
Here’s my perspective on mastering the art:
- Don’t treat business like dessert — Prioritize community over competition. Even if you and another professional offer the same services, your criteria for what makes a client “ideal” likely varies. This isn’t cake. We don’t have to worry about someone snatching the last slice.
- Provide excellent service at any price — I’ve been burned by professionals who offered a “friends and family” rate only to deliver substandard services. Usually, I’ve found they didn’t have the capacity to work with me but were scared to turn down the referral. Don’t be that person. Only accept work you can fulfill and don’t discount your services if it’ll affect your ability to deliver.
- Consider referral commissions — When you think of the marketing costs associated with acquiring a new client, offering a contact 5% to 20% of the sale you make from their referral is a great deal. Codes of ethics and professional policies don’t allow for incentivizing referrals in some industries (health care and mental health, for example), so don’t be offended if your offer of a commission or gift is declined.
The Power of Curiosity in Networking
No matter what line of work you’re in, asking better questions will almost always lead to better answers and better results. I discovered this back in the 1980s when I worked in the software industry. I was the bridge between computer programmers and corporate clients.
Mastering the art of asking questions enabled me to accurately scope out projects with precise budgets, deadlines and deliverables.
Consider these thought-provoking questions the next time you attend a networking event:
- What has been your best recent referral that wasn’t a client?
- Describe a time when you got a really great client referral. If it’s a consistent trend for you, how have you made it repeatable?
- What are you doing right now to get referrals?
Too often, people attend networking mixers and roundtables focused on what they want to tell others. However, I find that the most powerful person in any conversation is the person asking the questions. By asking the right questions, you can learn more about the professionals in a room than if you researched all of them on the internet.
Turning Introductions into Lasting Partnerships
Though I love the surprise clients that emerge from the shadows of my email list or LinkedIn network, you can’t build a sustainable business by betting on surprises. Most of my business comes from consistent, thoughtful follow-up.
Here’s how to master the art of follow-up:
- Seize the moment — Reach out within 24 to 48 hours of your initial meeting. This shows enthusiasm and helps cement the details of your interaction.
- Make it personal — Reference specific points from your conversation. Showing you were engaged during your introduction indicates you valued the interaction and will help jog the other person’s memory.
- Provide value — Share a relevant article, offer an introduction, or invite them to an upcoming event. Always think about how you can add value to their professional life.
- Be consistent but not pushy — Regular check-ins are good, but respect boundaries. A good rule of thumb is to follow up every 4 to 6 weeks unless you have a specific reason to reach out sooner.
- Vary your communication channels — Though email is my preferred method of communication, occasionally vary your follow-up by commenting on social media posts or sending private messages.
If follow-up isn’t your strength, find a way to create a routine out of it. I use a client relationship management (CRM) system (affiliate) to jot notes on each person within my referral network, and set reminders for follow-up.
Every day, I log into Less Annoying CRM (affiliate link) and I have a task list waiting for me that tells me who to contact that day, the context of our previous conversations, and who they are looking to meet.
Creating a Thriving Referral Network Ecosystem
When most people think about referral networks, they envision a straightforward exchange: you refer clients to me; I refer clients to you. But what if we could create something more dynamic and more powerful?
A referral network ecosystem is a diverse, interconnected group of professionals who support and amplify each other’s businesses. To build your own ecosystem:
- Map out your existing connections. Who do you already know? What industries do they represent? This will help you identify gaps and opportunities to expand your circle of influence.
- Look beyond your immediate industry. A strong ecosystem includes professionals from various fields. For example, as a business advisor, I’ve found immense value in connecting with accountants, bookkeepers, lawyers, and marketing specialists.
- Focus on building relationships. Intentionally seek out professionals whose services complement, not compete with, your own. These synergies often lead to the most fruitful collaborations.
- Regular communication is key. Share updates, celebrate wins, and offer support.
- Don’t just take — give generously. Share knowledge, offer introductions, and be a resource for your network. The more value you provide, the more you’ll receive in return.
- Collaborate and cross-promote. Look for opportunities to work together on projects, co-host events, or create joint content.
If you are a marketing professional, your ecosystem should include professionals within operations, finance, and sales. Also pay attention to professionals who provide a different scope of service than you do.
Not every marketing professional specializes in web design, copywriting, funnel-building, social media, video production, podcasting or online advertising — but an experienced marketing consultant knows at least a couple of people in each specialty.
Measuring Your Networking ROI
We’ve all heard the tired saying about your network being your net worth, but how do you know if your efforts are truly paying off?
As with any business investment, it’s important to measure the return on investment (ROI) of your networking activities. Quantifying the value of your networking efforts can help you refine your approach and put your time and energy where it matters most.
Quantitative Metrics
Start by tracking tangible outcomes:
- How many referrals have you received from your network?
- How many of these have converted into clients?
- What’s the revenue generated from these network-sourced clients?
- And how much did it cost to get those referrals?
These hard numbers provide a clear picture of the direct financial impact of your networking.
For instance, one of my associates can connect about $4,000 in revenue to a networking event I hosted a few months ago. And I didn’t even charge for the event.
But if she got that business from a paid program, she’d need to do a little math to figure out her rate of return (Revenue – cost / cost * 100 = ROI).
Qualitative Measures
Not all networking benefits can be measured in dollars. Consider knowledge gained, brand visibility, relationship quality and personal growth. Ask yourself:
- What valuable insights have you gleaned from your connections?
- Has your professional reputation grown within your industry?
- Have you formed deeper, more meaningful professional relationships?
- Have networking experiences helped you develop new skills or perspectives?
While harder to quantify, these benefits often lead to long-term business success.
Not all networking benefits can be measured in dollars. Consider knowledge gained, brand visibility, relationship quality and personal growth. Share on XTime Investment
Don’t forget to factor in the time you’re spending on networking activities. If you’re spending 10 hours a month on networking, what’s the opportunity cost of that time? Could those hours be more profitably spent elsewhere? Or is the networking time yielding benefits that justify the investment? No wrong answer here, but it’s important to be honest with yourself in evaluating where your time is going.
The Future of Your Network
Use your ROI measurements to refine your networking approach.
Are certain types of events or platforms yielding better results? Are some connections consistently more valuable than others? Are you making the most of your networking opportunities?
Use this data to focus your efforts where they’re most productive.
Networking is often a practice in planting seeds that take time to bear fruit. While it’s important to track short-term results, don’t discount the potential for long-term payoffs. A connection you make today might lead to a significant opportunity years down the line.
Networking is often a practice in planting seeds that take time to bear fruit. Share on XThe beauty of this ecosystem approach is its compound effect. As your network grows and strengthens, the benefits multiply. You’ll find yourself not just receiving direct referrals, but also gaining valuable insights, finding unexpected opportunities, and being part of a supportive community that elevates everyone involved.
By regularly assessing both quantitative and qualitative outcomes, you can confirm your networking strategy aligns with your business goals and is truly working for you.
So, take a moment to reflect: What has been your most valuable networking outcome this year? And how can you use that insight to guide your future networking efforts?
By approaching networking with intention, generosity, and a long-term perspective, you can build a powerful ecosystem that supports your business growth while helping others achieve their goals.
About Gwen
Gwen Bortner, host of The Business You Really Want, has spent four decades advising executives and entrepreneurs in 45+ industries. She helps women succeed in business without sacrificing happiness by identifying their true desires, aligning their business functions and providing true accountability. She spots overlooked bottlenecks and crafts efficient plans toward sustainable success that center your values and priorities.
