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Oxymoron: An oxymoron is a figure of speech that combines two contradictory or opposite terms. It is a phrase that contains words that seem to negate or contradict each other, creating a paradoxical expression.
Quick Answer: Bad referrals are a product of (a) lack of a system and (b) lack of proactive referral marketing
I have been asked about bad referrals at least a thousand times in my decades of work specializing on referral marketing. At the end of the day, the answer to what is a bad referral is very, very individual. Usually, bad referrals are categorized by one or more of the following:
1. Too many referrals that are low quality and thus waste too much time dealing with.
2. Low quality referrals that are unpleasant and unprofitable.
3. Referrals for non-ideal prospects from high quality clients.
4. Introductions to prospects we can’t work with
These referrals are almost always your fault.
Let’s break it down.
Question 1: Wasting time on too many low quality leads. What referrals are you asking for? If you are using non-specific terms (anyone you know) you are going to get…you guessed it…non-specific referrals. Additionally, getting too many low quality referrals is actually an opportunity in disguise. You clearly have people that are enthusiastically referring you and now you need to train them how to ‘upgrade’ WHO they are introducing you to. This is a big part of my work with clients
Question 2: Referrals you don’t like. This is also an example of people trying to help you, but not having the training or coaching from you about WHO you can really help. This is where conversations, outlined in my book “Can I Borrow Your Car?”, about how you love referrals and how you helped the person they referred you to find someone else that is a better fit (explaining why they weren’t a good fit for you in the process) and then reminding them that you always have time to help become massively successful.
Question 3: Referrals from ideal clients that don’t fit your business model. Again, a tremendous opportunity to (a) show your client you aren’t just about the money by helping someone important to them (b) practice your script on helping refer people to other providers that are a better fit and (c) work with your client to proactively identify WHO you want to meet for your business
Question 4: Referrals you can’t work with. This can be very frustrating, but they are tremendous opportunities to show the value of your referral network members. The best customer service (that drives Raving Fan service as Ken Blanchard espouses) occurs when you meet needs that you don’t get paid for. Each of these people (and the person referring them to you) is a potential ‘Golden Goose’ referral source for you.
What makes all of this work? Math
All marketing requires one thing to become effective: enough activity in the right areas.
The fuel that drives predictable referral marketing is conversations. The beauty of a written referral system is that you have, through your follow up on referrals, at least two additional referral conversations at a minimum. Bad referrals only stay bad if you don’t have a system and consistent follow through.
Related: Exit Realities: Embracing the Unpredictability of Transitions