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When you need an auto
mechanic or an air conditioning repairman, where do
you turn for help? Sure, some people turn to the yellow
pages. But most will turn to friends and family and
ask if they know of anyone who can do the work.
The best place for your business to be positioned
is to be the business on the tips of the tongues of
the people asked to make the referral.
THE 300 RULE
Preachers, funeral directors and people in a few
other professions have learned "the 300 rule" through
their own personal experience.
"The 300 rule" states that the average person knows
300 people on a friendly level. Wedding planners tend
to make reservations for 300 guests. Funeral directors
tend to need to make room for 300 mourners. You get
the idea.
DOODLING WITH CIRCLES OF INFLUENCE
Imagine your circle of friends, family and acquaintances,
a.k.a. your circle of influence. Now, draw your circle
of influence as a circle on a blank piece of paper.
Next, contemplate the people in your parents' circle
of influence. Some people who know your parents also
know you. Therefore, you will share some influence with
the people your folks know. Now draw your parents' circle
of influence on your piece of paper.
Your circle and your parents' circle will intersect
in one area, although the larger majority of the two
circles will not intersect. If you are like most people,
the two circles on your page at this point looks very
similar to the MasterCard logo.
Now imagine drawing a page full of intersecting circles,
each circle representing the circle of influence of
the people who are within your own circle of influence.
Imagine trying to encapsulate an accurate rendering
of where your circle and the circle of your friends
will actually intersect.
Some circles will share a large area of space, while
others will barely cover one another.
Actually, you can only imagine at this point what
your piece of paper will look like. The actual layout
of the circles imagined in this analogy is simply too
overwhelming for the mind to comprehend.
THE BIG PICTURE
300 multiplied by 300 equals 90,000. By using the
analogy of doodles in the previous section, the average
person can actually network with up to 90,000 people!
Even factoring in the overlap, one can still probably
network with 50,000 people through their own circle
of influence!
Simply amazing, isn't it?
HERE IS THE SECRET TO YOUR SUCCESS
There are 300 people on this planet whom you have
a reasonable amount of influence. Take advantage of
this fact. Make darn sure that every person within your
own circle of influence KNOWS that you are in business
for yourself, and make sure they understand what your
business offers.
When your friend is asked to make a referral, they
will recommend you.
PASSIVE VERSUS ACTIVE REFERRAL NETWORKING
When people ask your friends for a referral and your
friend mentions your business, that is passive referral
networking.
Active referral networking is when you can get your
friends go directly to their friends and say "Hey, I
have a friend who just started a business. If you are
in need of what he offers or you know someone who will
need his services, would you please give my friend a
call or make the referral to his business?"
If you can get even a portion of the people in your
own circle of influence to actively refer your business,
then you have built the foundation to build an advertising
campaign even more effective than the average local
television advertising campaign.
Think about that for a moment.
Most people only dream of reaching 50,000 potential
customers with their television advertising dollars.
You now have the knowledge to reach 50,000 people without
spending a single penny.
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