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We all have, and have heard the horror stories, 'I found a __________ (Realtor, Mortgage Broker, Inspector, Insurance Agent, Inspector, Plumber, etc') and he/she was so inept that the experience was AWFUL! Best case, the situations end with a lot of frustration. Worst case, working with a poor business-person can cost a lot of money. As a small business owner, I always ask two questions: 1) What did they do wrong? (Everyone always has LOTS to say about this) & 2) How did you find this person's services? More often than not, my friend telling the 'bad experience' story found the 'bad businessperson' through traditional advertising ' not through referral. These are the 7 Top Reasons why you should always find your business vendors by referral.

1) They have proven themselves.
When someone is 'referred in' to your business, that person has already done business with a friend or colleague. The vendor from the phone book is like a box of chocolates. With a referred businessperson, you KNOW that they have performed in the past, and they are more likely to perform in the future. This track record is important when choosing your vendor.

2) They have something to lose.
Namely, the referrals of your friend! Your referred vendor appreciates and protects every person who values their services and continues to support their good business practices. Unlike the 'phone book vendor,' who does their business from phone call to phone call, the referral businessperson won't 'bite the hand that feeds them' and embarrass the referral source who gave them your business.

3) They have something to gain.
The businessperson who chooses to do their business by referral is always seeking more referrals. In order to gain this referral business, they must build professional relationships ' the core of which is solid work. When a vendor approaches work with the mindset of 'growing their business by referral' the consumer will always receive quality service.

4) They have more time for you.
The average small business owner spends 85% of their time prospecting for new business. This seems completely backwards to most people ' but finding business is the hardest part of small business! The successful businessperson who has built their business by referral has the luxury of a constant stream of incoming business ' and is therefore able to spend more quality time with their customers.

5) They are more pleasant to work with.
Type A personalities typically excel at gaining their business by referral ' they are the quintessential 'people people' who love and need constant interaction. Even if your referral vendor isn't the stereotypical 'Type A' they will still, more than likely, be a pleasant person to do business with ' after all, it takes a little more than good work to continue to receive business referrals. Your friend or colleague got along with this vendor ' you probably will, as well!

6) They are more professional.
Referral businesspeople look at a new business transaction as a way to build a new relationship. The 'phone book vendor' looks at a new business transaction as an order that needs to be filled. The referral businessperson will conduct themselves in a manner they expect will result in future business from you, and your friends and colleagues.

7) They will return the favor.
Referral businesspeople know the value of referrals and tend to only do business this way. If you truly 'click' with your referral vendor, and put them in your catalogue of people to refer to, the chances are that they will return the favor. In doing so, you will build your own sphere of influence, and your own business.

Doing business by referral is a much more pleasant and effective way of filling your needs, and your customers' needs. Referral businesspeople tend to be much more pleasant, professional, and effective than vendors who solely advertise by traditional means. The referral businessperson values your business, and the business of your friends and colleagues, and will make sure that you are satisfied with their services. By looking to your friends, family, and colleagues, rather than to the phone book, you will almost always have a pleasant experience!