Most people network because they're looking for some type of referral. I use the term referral generically, because there are several different types of referrals that vary in quality and value.

The most basic form of referral is a sales lead. Personally I find these to be the most frustrating type of referral. Typically a lead consists of a name and contact information of someone who might need what you offer. In most cases it would be inappropriate for you to use the name of the person who gave you the lead. Meaning that this sales lead isn't much better than a cold call. It may have a little more value depending on the information you receive from the referrer. The lead may prove to be better qualified than a random cold call you might make.

True referrals vary in quality. At the very least it would be an improved lead where you are given the name and contact information for a prospect, and permission to use the referrer's name. A better referral would one where the referrer talked to the referee about you. That way they're at least expecting your call, and probably know a little bit about you and your capabilities. The best referrals include some type of introduction. Whether it be a simple virtual introduction via e-mail to a professional in person introduction.

We all love referrals. For many of us our businesses wouldn't exist without these personal recommendations and introductions.

As much as I like referrals, I truly love making connections. In my opinion helping someone make a connection, if done correctly, is the highest form of referral. When I help someone make a connection I'm introducing two people who probably wouldn't otherwise meet, who can massively impact each other. For example, I recently introduced someone who represents a company that sells and services copiers and printers to another gentleman who provides IT services. They were a perfect fit, and are able to refer substantial business back and forth.

Connections are the referrals that keep on giving. This week think about 2-3 people who've recently helped you. Help them to make some connections. Most of the time they'll be so thankful they won't know what to do for you... That's why you'll need to stay tuned for my next post about asking for what you need.

Happy networking!

Scott Ingram
NetworkInAustin.com