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I had a boss once that was afraid to refer anyone out; wanted all the business for himself. We were totally stretched out once when someone called; someone he'd been soliciting for a long time & he especially didn't want to turn him down. I convinced him to refer them to my brother in law's company, that they could take good care of the customer and not steal them from us. He reluctantly referred them. BIL did the job and they were happy. They called us back a few months later for another job. We had looked out for them and they still called us back.
I was a contractor for 5 years and never hesitated to refer to friends in the business. It does me no good to stop 1 customer's job to go do another one. Too messy and it can go to all extremes. If we sow good seed, it all goes around and comes around to find its way back to us.
Might be a silly question but I've only been to a few different countries and never had this issue to begin with. But I wanted to know is referring potential customers to another business that services their full needs a U.S. thing? For instance, say someone wants their car tinted and exterior colored but that particular auto shop doesn't do both so the owner kindly refers them to another auto shop in the city that does. Even at the detriment of their own income.
This happened so often growing up, I never thought about it until I saw it happen again today and was incredulous at the integrity and honor displayed. The owner could have easily played dumb or aggressively coerced them just to get that sale. The customer was dead set on having both done due to time constraints. They even said they were sorry they couldn't do both and still referred them over.
I used to do it. If I can’t handle the work or I’m booked up I give references. I was only willing to stretch so far. If I can’t do the job right I’m not gonna cut corners just to get a customer. I screw up theirs job or can’t show up I look like a big Ahole. And not being able to service the customer correctly and fairly I know they won’t call me back. When I refer someone It’s referrals I know are reliable. Now as I’m no longer contracting if someone asks for referrals it’s people I use and used in the past that I know their work and are reliable.
Sales 101 - Never refer or promote a competitor. If they are smart they should steal your customer. I would as long as I was the one making the money. In a way my hard sell sales career took a long time to perfect and it was a lot like commissioned car sales. Take no prisoners.
I know I sound like a horrible person but I never gouged anyone while doing it and I was able to support myself very well.
Happens all the time in my line of work. We're interchangeable cogs working as independent contractors through agencies. Client books through ABC. ABC can't find a cog or shuffle its cogs around to cover it. They start calling around to see if XYZ can. Most of the time the cog doesn't even know about it. I'm booked with XYZ tomorrow from 10-2. They call me up at 4:30 the day before and ask if they can switch me off that and double book me for a 10:00 and 2:00. Sure. I make more money. The other person with a 10:00 and 5:00 makes more money. I just turn my work in to XYZ who sends it off to ABC with my invoice. They may or may not add 10 percent to it depending on their relationship with ABC. I only know about it if the client asks for the same cog and I show up and see ABC's letterhead on all my work.
Nowadays we've got these big national companies that that's all they do. The do marketing, sign clients, and farm 90% of it right out to their competitors for the referral fee. Then they try and get me to work for them for 60% of what I charge because they can make it up in volume. I might even get an iPad.
I own a business. I refer people to a lot of other businesses and they in turn refer customers back to us. I would guess 70% of my new customers are referrals.
Sales 101 - Never refer or promote a competitor. If they are smart they should steal your customer. I would as long as I was the one making the money. In a way my hard sell sales career took a long time to perfect and it was a lot like commissioned car sales. Take no prisoners.
I know I sound like a horrible person but I never gouged anyone while doing it and I was able to support myself very well.
I've sent prospects to competitors who I knew could do something I could not. I have had those same customers come back to me for other work saying they remember how honest I was.
One thing I have learned in my 30 years of being in business. Honesty sells. The old saying "if you're not lying, you're not trying" is old school and needs to go away.
I don't see this anymore. It's more of the attitude "Hey you don't like my business go elsewhere "
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