Difference between a Lead, Tip & Referral

WHAT’S THE DIFFERENCE BETWEEN A LEAD, TIP AND A REFERRAL?

      

THE DEFINITION OF A REFERRAL

      I once heard Joe Stumpf, the founder of the real estate coaching program, “By Referral Only,” put it this way:

“A referral is when you give someone that you know, like and trust to someone you care about.”

I agree with him. Although, I think a good referral is when you pave the way with a connection to someone who has a need.

           

WHAT IS A GOOD REFERRAL?

     

My definition:

A good referral is when you connect someone you know, like and trust to someone who has a need.

      Statistics soundly prove that the more you know, like and trust a business person, the more you will refer them to your friends, associates and family.

      A good referral opens the door so that you can walk right in and easily get past the gatekeeper to talk to the person making the decisions.

     A good referral is when you are asked to contact a person who has a current need for your product or service and they are waiting for your contact with positive expectations.

      A lead or tip is nothing but a fancy-wrapped cold-call. That’s when you hear, “Hey Bob, here’s a good lead for you. My neighbor’s house lost some shingles last night in the storm. You should give them a call.”

      If it was a referral, it would sound something like this. “Hey Bob, I spoke to my neighbor last night after the storm and gave them your card. I told them how much I trusted you and they’re hoping that you can help them too. They would like you to call them right away.”

      That’s a pre-qualified quality referral that will probably land a sale. There is a good chance that those neighbors won’t even entertain any other bids. They will go with the person referred to them. That’s the beauty of referrals.