Summary

Justin Stoddart discusses the issue of referral leakage, where potential business referrals fail to reach professionals despite good intentions. He outlines three main reasons for this: execution often exceeds intention, requiring professionals to assist clients in making referrals; the lack of a shared medium, such as business cards, which can lead to missed opportunities; and the absence of edification, or a documented trail of endorsements, which helps both parties remember the introduction. Stoddart recommends using a three-way text message as a shared medium and emphasizes the importance of training clients and providing edification to prevent referral leakage.

Outline

Referral Leakage: Introduction and Overview

• • Justin Stoddart introduces the topic of referral leakage, explaining that many professionals miss out on referrals despite good intentions from clients.

• • He emphasizes the importance of understanding why referral leakage occurs and what steps can be taken to prevent it.

• • The episode will cover the top three reasons for referral leakage and provide actionable strategies to address them.

• • Reason number one is discussed: execution is greater than intention, highlighting the need for both intention and execution to ensure referrals are received.

Reason One: Execution is Greater Than Intention

• • Justin explains that while clients may have good intentions to refer, without proper execution, referrals can be missed.

• • He stresses that the responsibility for both building intention and ensuring execution lies with the professional, not the client.

• • Suggests teaching clients how to refer effectively, such as providing a simple and easy method for referrals.

• • Emphasizes that following up with clients to ensure they know how to refer properly can significantly increase conversion rates.

Reason Two: Lack of a Shared Medium

• • Justin discusses the importance of having a shared medium for referrals to ensure both parties are notified.

• • He explains that handing out business cards is not a shared medium and often results in missed opportunities.

• • Recommends using a three-way text message as the best method for shared referrals, where all parties are notified and can follow up.

• • Acknowledges that some professionals may prefer email, but stresses the need for follow-up to ensure the referral is received.

Reason Three: Lack of Edification

• • Justin introduces the concept of edification, which involves building up both parties involved in the referral.

• • He explains that without a documented trail of edification, referrals may be forgotten or not remembered.

• • This article provides an example of how to edify both parties using a shared medium, such as a three-way text message.

• • Highlights the importance of making introductions so that both parties can reference and remember why they were introduced.

Conclusion and Actionable Steps

• • Justin summarizes the three reasons for referral leakage and the steps to prevent it.

• • Emphasizes the need for professionals to train their clients on how to refer effectively.

• • Stresses the importance of using a shared medium and edifying both parties to ensure referrals are received and remembered.

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  • Encourages professionals to implement these steps to stop referral leakage and start receiving the referrals they deserve.