Show notes
This is a rebroadcast of Episode 548.
Since “666” is a number that means something sinister to some people, we thought we would do a podcast where “the devil is in the details.” This is a topic where the details are really important and we thought we’d have some fun related to the number. The topic is not evil, we promise. It is detailed though, so embrace that part.
Synopsis
At one point, Dr. Misner outlined 16 levels of a referral. But while writing the second edition of Networking Like a Pro, he realized that his levels should match the 5 levels on most BNI referral slips around the world.
These 5 levels of a referral are cumulative, and laid out in detail in the book.
You share the contact information of someone who expects to be contacted by your referral partner.You've also shared additional information (business card, marketing materials, website) about the person you're referring with the prospect.You give the prospect a personal testimonial about the person you're referring.You make a personal phone call and arrange a meeting between the prospect and the person you're referring.You make an in-person introduction between the prospect and the person you're referring.
The lower the level of referral, the higher the level of difficulty in turning it into business. Your goal should be to give referrals that are at least a level 3.
The 5 levels of a referral are in Chapter 36 of Networking Like a Pro: Second Edition. You can also read more about them on Dr. Misner's blog.
Brought to you by the Networking for Success Channel on YouTube.
Transcript of Episode 548
Priscilla:Hello everybody and welcome back to The Official BNI Podcast, brought to you by the Networking for Success Channel on YouTube, which features Dr. Ivan Misner and many other networking experts. I am Priscilla Rice, and I am coming to you from Live Oak Recording Studio in Berkeley, California. I am joined on the phone today by the Founder and the Chief Visionary Officer of BNI, Dr. Ivan Misner. Hello, Ivan, how are you and where are you?
Ivan:Hi Priscilla. I am doing great and I am in Charlotte NC at the new Global Support Team headquarters, at the global headquarters at BNI, which moved there about a year or so ago, and that is where I am at this week.
Priscilla:Great. Tell me about the five levels of a referral.
Ivan:Five levels of a referral- for many years I have had, you know, books that I had written that talk about the various levels of a referral. I had broken it down at one point, I think it was 16 levels of a referral in Business by Referral. I narrowed that down in the first edition of Networking Like a Pro. But in the second edition, I had BFO.
Have I ever told you what a BFO is? It's not bad. It's a blinding flash of the obvious. The blinding flash of the obvious was: why aren't my levels of referrals matching the BNI levels of a referral? You know, instead of twelve or ten or whatever, why not match the five levels of referral (of BNI)? Most referral slips around the world have five different levels.
So in Networking Like a Pro, I laid out in detail the five levels of a referral. I am going to give a summary of them to you today on this podcast. This is right out to the Second Edition of Networking Like a Pro. It has already hit a best sellers list. it is like a mandatory manual for chapters. It's a great book. I really recommend it for individuals or for chapters.
There is a section on the five levels levels of a referral and I am going to give you a summary of that here. The details are in the book. Understand that all five levels are mostly cumulative so that when you give a level two referral, it includes what is in level one plus what is in level two. Does that make sense? It's not standalone. Three is cumulative of one and two, etc.
So a level one referral- oh and by the way, if you are listening to this you may be surprised that level and four and level five referrals have been given out that I don't I think are really level four and level five referrals. This is my opinion. This isn't corporate policy that it has to be this, but I have been doing this now for 33 years. This is how I define and recommend you, as chapters, define the five levels.
Level one- level one is basically name, rank and serial number. You recommend someone. You are the referral source, you recommend someone and you share their contact information, and they know that you have shared it. Level one is not a lead. A lead is 'here is somebody's name and telephone number. They don't know that you are calling but you know they need your service'. We shouldn't be giving any leads out unless that member is accepting a lead and says so publicly. An example of that is an opportunity to speak at some organization. I used to accept those. It wasn't quite a referral, but it was a referral for a speaking engagement. It wasn't a referral for a sale. Name, rank and serial number, it is contact information and the person knows that you have been given that information. That is a level one.
A level two is in addition to the fact that you referred them, the referral source provided, maybe, some literature or a website, information, certainly your business card. That is so easy in BNI. You know, just a little bit of additional information that can positively influence the prospect- giving them a little bit more information on you, generally material.
Level three referrals, in addition to some or all of the previous levels, level three referral is where someone gives a testimonial and gives a verbal recommendation to you about the prospect, takes time talking to the prospect. You have spent some time talking to the prospect and you are giving information about the person that you are referring. This is the first level of a referral that truly involves a modicum of effort on your part. It usually includes giving some background information, a description of what you know about the person, and to me, I try to always give at least a level three referral, where I give the basic information, give a testimonial, and can personally recommend a product.
Now, here is a level four referral. By the way, a lot of people are giving fours and fives that are really threes. Here is what you have to do for a level four in my opinion: This is another level up from the person that is giving the referral. You are the referral source. You can make a personal phone call and arrange a phone or in person meeting between the two parties. You know this person well. "Let met get them on the phone. Are you interested?" Yeah, let me get them on the phone. Say hi to them and maybe set up an appointment, or you do a telebridge call. "Are you willing for me to set up a telebridge call so you can talk to them, and you know, we can connect?" So you as the referral source, arrange the call. You arrange a meeting between the two parties and you now have moved beyond just being a promoter and you are now in the role of a connector or facilitator. So level four is basic connector facilitator role. it clearly takes more effort and is a sign that you are a committed referral partner to the other person.
Level five, I think this is a hot prospect. Maybe more than that, level five is about your effort. To me, level five is an in-person introduction. At this level, you are making a serious commitment of time and energy to support the person you are giving a referral to. You don't just arrange a meeting but you participate in it. At this level, you address the need. What are you looking for because I know this individual well. "What are you looking for? I will see if he can do it." And you talk to the person, you talk to your client or prospect and say they can absolutely do that. I will be in the neighborhood with him or her next week. "Would you like to meet? I can introduce you."
This enables you to sort of share with the BNI member the information so they can tailor the discussion with the person. Then by agreeing to serve as an intermediary in this face to face introduction, you become an active referral partner and one of the things that you want to do is edify your referral partner in this meeting, and this is really important. Talk to your referral partner, the BNI member, about edifying you. This comes in handy for you in your relationship with the person because now, they are hearing not only how good you think the person is that you are referring, but that person is also saying, "You are doing business with a great individual. They do fantastic work." It's a sort of mutual edification which raises both of you in the eyes of the prospect.
So a level five referral is, in my opinion, practically a closed deal. It means that it's a lay up. It is not a guarantee, but it is a lay up. Not much is required, really, other than answering some questions and really being able to obviously help the person who is looking for the product or service.
In my book, I talk about the referral continuum of the five levels of referral. This is important. The lower the level of referral, the higher the level of difficulty to turn it into business. I have a graph that I show in Networking Like a Pro second edition, to show that a level one referral takes 95% effort to turn into a sale but a level two referral takes 75 %. There is no magic to the numbers, but it is less effort as the level increases so that a level three referral is maybe 50% effort compared to the highest level of referral. Level four might be 25% and a level five might be maybe 5-10% effort - so that the higher the level of referral, the lower the level of difficulty to turn it into business. Does that makes sense?
So your goal should be to never give out- my goal has always been to never give out - less than a level three. Have I done it? Yeah, but I don't shoot for it. My goal is to give a level three referral, and I strive to do level four and level five referrals.