Looking to expand your sales "reach"? Consider joining a referral group.

For those of you who may be unfamiliar with this term, a referral group usually consists of 10 to 20 entrepreneurs, salespeople, or small business owners from noncompeting industries, who meet once a week to "exchange leads."

As an example, let's say I meet someone at a networking event who's looking to create a marketing program for his small business. I know that isn't my forte, but I also know someone in my referral group who could do just that sort of thing. So, I'd take that person's contact information, give it to Amy Windham from my referral group, and she would follow up with a phone call to see if he's interested in learning how her services can help his business.

The best thing about the referral groups I've seen is that they "lock out" your competition by not allowing another agent in your industry to join that particular group. Needless to say, that feature is particularly inviting for the highly fragmented, highly competitive real estate industry, where it sometimes feels like an agent is standing on every block.

So as an example, let's say someone else in the group runs into a person looking to buy or sell a home. That individual will be pointed in your direction, since there is no other agent in the group to directly compete with you for that business.

In essence, by joining a referral group, you've effectively created a sales team that can help you plug into the networks of other people in your group.

"Great deal," you're thinking. "So what's the catch?"

Well, there actually are two, but both are easy to overcome.

First, you have to be 100 percent committed to learning the businesses of every other group member, otherwise, how could you spot a good lead for them when you're networking?

Second, you need to attend a majority of the weekly (or monthly) meetings, so you can stay abreast of the latest happenings and continue to pass out leads. If you fall short in either of these areas, chances are other group members will notice, and they'll be less inclined to pass leads your way because of their perception that you're not really looking out for them.

But, if your schedule allows you to attend these meetings, and you're truly committed to finding leads for other members within your group, then joining a good referral group is a great way to increase your sales "reach."

Published: September 23, 2003

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As a popular speaker and author of the resource How to Get More Business in Today's Tough Market, Brian specializes in helping busy agents get more leads and close more deals - even in a market as "challenging" as this. For a free report on 2 Easy Ways to Get More Business in Today's Tough Market, just email my office and we'll send it right over.