BNI is a group built on values. We don’t say “changing the way the world does business” for nothing! The pillars BN is built on include Givers Gain, Accountability, Building Relationships,and more! But while people love BNI and stick with it for its values, they initially come to it to build their business through passing qualified referrals.
No one initially commits to a networking group for the joy of meeting once a week. However, if all you wanted was leads, there are other ways to go. So, what’s the difference between leads and qualified referrals?
Leads
A business lead is a potential customer or business who meets specific criteria that mean they may be a good prospect for you or your sales team to meet. Leads come in many forms, from lists of people and numbers to monthly listings for new businesses.
Where Can You Find Leads?
You can find leads just about anywhere if you know where to look. It depends on your business
If you offer business services, you may want to pay attention to new construction in business districts. If you’re a house cleaner, you may want to pay attention when new homeowners move into a house. It all depends on your business model.
There are also companies that specialize in providing leads for other businesses. Typically, they’ll focus on a particular industry and provide you with a list of names and contact info for people who fit your prospect profile.
These leads come in various levels of readiness, and their quality can vary quite a bit depending on the source.
Qualified Referrals
So, what is the difference between a lead and a qualified referral?
A qualified referral has some things in common with leads – it involves a person or business who fits the criteria of being a good prospective customer for the company receiving the referral.
You could say that all qualified referrals are leads, but not all leads are qualified referrals. A referral has some things leads don’t necessarily:
Interest
Firstly, a qualified referral has already expressed in doing business with the referral’s receiver. They need the service and know it, or at least they’re considering it.
Expectation
Secondly, the best qualified referrals also are expecting to hear from the person receiving that referral. In BNI, when a member of your chapter passes a referral to you, they have usually already told the person referred to expect your call, and that person is waiting for it.
Credibility
When someone refers your business to someone they know, they lend you their credibility. Word of mouth is one of the best ways to get business because people love to know the person they are about to speak with is trustworthy.
That’s why people check reviews on places like Facebook and Google before they contact a company. They want to know others had good experiences. But if the person with a good experience is someone they already trust, it means even more.
BNI Members Are Committed to Passing Qualified Referrals
BNI is not a lead passing group. Instead, we’re a qualified referral-passing group. Now that you know the difference, are you wondering how we go about it?
Firstly, we use the same principles we discussed.
- Accountability and Givers Gain– everyone is expected to bring at least one referral to a member of the chapter each week. We log referrals in the app. We’re also accountable to the member who passed the referral. We ensure that potential clients are treated well.
- Relationship Building and Lifelong Learning– we learn about each other. We understand each other’s businesses, not just what our fellow members do. We know what makes each other’s businesses special. At each meeting, each member has a minute to discuss their business, and the members all get to learn about it.
- Recognition - Our goal in BNI is to help each other while we grow our businesses. The most successful members focus on Givers Gain and what they can do for each other. That’s why we recognize the members who give the most each month.
We do that by tracking referrals and other metrics and announcing the people who’ve worked the hardest at helping others.
How Is Your Qualified Referral Stream?
So, do you have a strong, consistent stream of qualified referrals coming your way? While you can go out and purchase leads, they won’t always be the best fit for your company. Your fellow BNI members will become members of your sales team who seek out and qualify the best clients for you.
Then, they’ll lend you their credibility when they pass that referral your way. Referrals can’t get more qualified than that!
