I have been in the network marketing profession for 2 years. Until very recently I have built my business(s) strictly online. Yes, it can be done, but honestly, I’ve found that most people don’t have the patience or resources to build their business through internet marketing alone. I found myself constantly plugging holes in my organization since I wasn’t recruiting members who really understood what it takes to start and run their own business.
Unfortunately, the alternative of contacting friends and family and hosting parties at home is very unappealing. Many of these people don’t “get it” either. Although I have to tell you that if you look and talk to all the leaders in the industry (the real six and seven figure earners), most will tell you that this is how they built their business. A few months ago I connected with my now good friend and colleague, Michael Butler. He is the director of a reference club. I didn’t know and had never heard of a referral club before meeting Michael. And honestly, I didn’t check it right away. It took me about 3 months into our business relationship to finally click on his link and check it out.
Q. What is a referral club?
A. Referral clubs provide a structured and positive environment for businesses to pass references to each other… a proven way of doing business. Members meet weekly for breakfast or lunch for the sole purpose of passing qualified referrals to each other.
A light bulb went out. bankers, real estate professionals, financial planners, mortgage brokers, chiropractors… These are the business professionals who belong to these clubs. These are the kind of people I wanted to target. However, I must admit that approaching these professionals was intimidating. I know the reputation of our industry is improving, especially among the top earners in business, but the general population is still suspicious of us and many still view us as pyramid schemes. (OK, I know it’s just your ignorance) Now, my core business is a highly reputable company, six years in existence, and in the health and wellness industry with a strong product line, so I definitely have an advantage there.
Advice Before joining any referral club, you should consider your company’s product line. Is it something you would buy if there wasn’t a compensation plan attached to it? If you’re just working on selling the franchise at your company and not building a base of satisfied customers, then a referral club probably isn’t for you.
There are several different types of referral clubs, BNI, Le Tip, and Gold Star, just to name a few. You need to research each one to see which one is best for you. Most of these clubs are industry-exclusive, meaning if your industry is already represented, you can’t join until they leave the group. It could be a very long wait. Referral clubs work and most members stay.
Being the true entrepreneur that I am and still hesitant to feel a bit out of place as a member; I went a different route. I wanted credibility. He wanted to be seen as a true business professional. In my research, I found a club where I could become a director and actually start my own club. Instant credibility. Now I approach the business professional at his level. I am helping them build and grow their business. I’m serving them first. Naturally, they just want to know about me and what I do. In today’s economy, many people are looking for a second source of income. Within the club they come to “Know, Like and Trust” YOU. A winning combination to grow your business!
Whether you choose to become a member or start your own club, I can’t recommend getting started with a club one way or another enough. If you are serious about growing your business, you must be in a reference club.