This topic always strikes up a great conversation when I have it during one our Productive Prospecting workshops and it has been the source of many large and painful train wrecks for professionals in their careers.
The rule of “that which gets rewarded gets done” is often understood but the execution is fraught with many potential dangers. From the appearance of impropriety to perceptions of an employee receiving ‘kickbacks’ to potentially someone feeling insulted over ‘just doing the right thing’ leaves a lot of room for error. Too many people think of rewards in terms of monetary compensation only when there are so many other rewards that are often more meaningful (and, frankly, less risky).
Today’s post will discuss a couple of options that we have found successful in motivating many quality referrals to our clients and perhaps you can share your experience also.
Our first example: An insurance agent who sold P&C (property and casulty) insurance to large employers in the Springfield area partnered with another agent who sold Employee Benefits offered a 50% commission split to provide access to his clients for benefit sales. Much business was written and both producers were happy. The P&C producer retired after a year and a half and the benefits producer got to keep the client relationships.
Things to consider: Was there on-going access to additional referrals was gone after the producer retired? What if the Benefits producer got paid 1/2 but still had to do all the work? How would the clients feel knowing that the reason the introduction was made was for sales people to make $, not necessarily provide best person at the best time? What is ethical in your industry?
Our second example: A Financial Service advisor is seeking to refer a CPA. In one year 12 introductions were made to the CPA of great clients who all engaged him (100% closing percentage) he reciprocated with one introduction to a prospect who did not hire the financial advisory. When the financial advisor asked him why he had only referred one prospect in 12 months his response was ‘All of my business comes from other financial advisors, if I discover that a client is not happy and I refer them elsewhere I lose the referrals from that advisor forever’.
Things to consider: Determine the access to potential referrals during first meeting – if all of the business is coming in from you and your competitors, the potential for reciprocity is slim. That means your rewards may be the ‘warm fuzzy’ from introducing someone just because you think they are the best (and not through reciprocal referrals). ‘You’ll get your reward in heaven’ creating good karma by referring because you have to give in order to receive, but don’t expect equal effort in helping you from that individual.
These are just 2 different examples that exhibit a few of the challenges facing you in building a referral relationships. There are far more, of course, and motivation is a funny thing.
One of my all time favorite books on motivation is Drive by Daniel Pink. In his book, Mr. Pink does a great job of describing the 2 motivations of people. Intrinsic vs Extrinsic. Extrinsic is someone motivated by $ (coin-operated salespeople), recognition, status, contests or competition – you get the picture. The other motivation is intrinsic, this one is best described as the ‘warm fuzzy’, personal satisfaction you get from doing the right thing.
In the 12 years I have been training sales people and watching referrals happen, the most referrals are given and received by intrinsically motivated professionals. These are the folks that will seek out opportunities for others before serving themselves. The result of this investment is that it is recognized by others who share that same motivation and they then respond. The intrinsically motivated person is one who will not be ‘outgiven’ because they have a generosity of spirit. They are authentic and this is reflected in their client relationships- they have a high degree of trust and they build the same level of trust with their partners.
How do you find these intrinsically motivated people?
Your first step is to become one. Who have you gone out of your way to help through a problem? Who have you introduced to a great opportunity, just because? What questions have you asked about your client needs, not related to your service? As you begin to expand your relationships, you will be led to other people of these same motivations. You gravitate to one another. You are genuinely interested in them and curiosity leads to opportunity. These are the people that ask you as many questions as you ask them. The questions are deep and probing to get to the real story, real person. It is not superficial interest. You feel it. You know the difference.
In contrast, extrinsic motivation leads to short term relationships that are transactionally based. They fall apart if the rewards are not on-going. In some cases the financial motivation gets in the way of introductions happening if they find someone who needs the solution, but they don’t feel as if they are getting a ‘big enough piece of the pie’ for their effort. It’s about quid pro quo and keeping score.
Bottom line – you don’t need many great partners to be extraordinarily successful. So take time to find those that have the right motivation to partner with you long term for the right reasons.
Would love to hear your thoughts! Please chime in using the comments below!