Pitfall to Referral Marketing
One main pitfall in referral marketing is not having a clear understanding of the difference between networking and referral marketing. Most people use networking and referral marketing interchangeably, but they are not. The word network means: any netlike combination of filaments, lines, veins, passages, or the like: a network of arteries; a network of sewers under the city. When I try to understand a thing I like to go to the thesaurus. I think words and language are very important and I have learned that words mean different things to different people. The thesaurus says that a network is a chain, grid, net, web, system, artery, maze, nexus, veins and wiring. I like to use plumbing as an example of a great network. It is a great network of pipes, they are all connected together. But the real question is what is in the pipes, water, cold or hot, gas, natural or propane? I ask this question, what is in your pipes, to ask what is in your network. In referral marketing, referrals are in your network! Some people are “networking†but they are not fully engaged in passing referrals, they are not passing referrals on purpose. They pass a referral if someone asks them for a certain service. This is more of a passive word of mouth approach and is not referral marketing. There are two main things we must do to be great at referral marketing.