Understanding the Difference Between Good and Bad Referrals| Dreamworth and Company

Referrals are the lifeblood of many businesses, mine included. They can be rewarding when they're spot-on. However, not all referrals are created equal. Sometimes, they can miss the mark entirely. Let’s explore the difference between good and bad referrals and how to handle these situations effectively.

What Makes a Good Referral?

A good referral is like a well-wrapped gift. It's thoughtful, intentional, and perfectly suited for your offerings. Good referrals come from people who genuinely understand your business. They take the time to share accurate and current information about your services. For me at Dreamworth and Co., a good referral looks like this:

A person in need of a modern, animated website built on the Wix platform.
A business owner seeking website maintenance or marketing solutions.
A client ready to streamline their systems and elevate their digital presence.

When these types of referrals come through, they create a seamless process. The referred person already knows my offerings, allowing us to start on the right foot.

The Value of Good Referrals

Good referrals can significantly impact your business. They not only save time but also set a positive tone for future interactions. Referrals from satisfied clients often lead to higher conversion rates. Plus, they enhance your reputation by showcasing the trust others have in your skills and services.

What Makes a Bad Referral?

Conversely, a bad referral can feel like receiving a puzzle piece that doesn't fit. It's not always the referrer's fault. Sometimes, they work off outdated or incomplete information about your business.

Let me share my experience. In 2019, I made a significant pivot. Dreamworth PR transformed into Dreamworth and Co. I shifted my focus exclusively to website design, system development, and marketing. Public relations services were removed, as was logo design. Yet, I still get referrals for those services years later.

For instance, I once received a referral from a well-meaning past client for a logo design project. Unbeknownst to them, I had stopped offering that service years ago. On another occasion, someone referred me to a friend needing assistance with public relations. That service hasn’t been part of my offering since the rebrand. These moments can be frustrating, but they have imparted immense lessons.

Understanding Bad Referrals

Bad referrals can also stem from miscommunication or assumptions made by the referrer. It's crucial to understand that these situations can arise from a lack of awareness rather than any ill intent. Recognizing this can help in how you respond without burning any bridges.

How I Handled Bad Referrals

When I encounter bad referrals, I don’t simply dismiss them. Instead, I view them as opportunities to educate and realign. Here’s what I’ve done:

Reached Out to Past Clients: I connected with past clients, informing them about my pivot. I explained my current offerings clearly. For example:
“Hi [Name], I noticed you referred someone to me for [service no longer offered]. Thank you so much for thinking of me! I wanted to let you know that I’ve shifted my focus to website design, system development, and marketing. If you know anyone who needs these services, I’d love it if you sent them my way.”
Updated My Communication: I reviewed all my communication materials—email signatures, social media bios, and website content—to ensure they accurately represent my current offerings. Consistency is essential.
Redirected When Necessary: For those who reached out for discontinued services, I was upfront. I either provided a referral to another professional or kindly explained that I’m no longer offering that service.

Learning from Experiences

Every bad referral provides an opportunity to learn. Analyzing past errors can guide you in establishing better communication practices. Consider maintaining a record of common inquiries. This can be helpful for future reference.

How to Prevent Bad Referrals

To minimize bad referrals, effective communication is key. Here are a few tips:

Educate Your Network: Regularly share updates about your services on social media, in newsletters, and during conversations with clients.
Be Specific: When someone asks about your services, avoid vagueness. Be clear and precise about your offerings.
Set Boundaries: Politely decline projects that don’t align with your current services. Explain why to maintain transparency.

Establishing Clear Communication

Establishing clear communication habits can significantly enhance the quality of referrals you receive. Regular updates and clarity about your services help ensure that everyone in your network is on the same page. This proactive approach can prevent confusion and lead to more quality referrals.

The Takeaway - Developing a Good Referral Program

Referrals may not always be perfect, but with some effort, you can turn misaligned ones into opportunities for growth. By educating your network and keeping your messaging clear, you’ll attract the right clients who fit perfectly with your services.

Have you ever dealt with a bad referral? How did you handle it? Let’s discuss it in the comments!