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HomeMarketingAttracting new businessBusiness referrals: Avoiding recommendation lemons

Business referrals: Avoiding recommendation lemons

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In networking circles you’ll often hear the mantra “People like doing business with someone they trust or someone recommended by someone they trust”, and although this is true, business referrals can go wrong.

26 Jun 10 | Wendy Buckingham

I’ve learned the hard way that recommendations and business referrals should be checked out just as thoroughly as cold contacts. 

Off the top of my head, I can recall the real estate agent I met at a networking function and the conveyancer she recommended who both turned out to be hopeless; the neighbour’s trusted cleaner who obviously had sight problems when it came to our dust; and the car we bought from a trusted friend. (Actually, we’ve been caught twice on that last one). 

These experiences have convinced me that just because you meet someone who is offering the service you need at a networking function, or a friend or contact recommends someone, it doesn’t mean they are unquestionably a good match for your needs. 

So now, even though I really love doing business with someone who has been recommended, I work by the rule of caveat emptor (‘Let the buyer beware’) and do my own checks. 

Here are some of my tips for avoiding business referrals and recommendations that turn out to be lemons: 

  • Ask the person recommending a service such as coaching or graphic design whether they have personal experience of working with this person or business. Be specific. What exactly did they work on? How was their level of response and communication? Make sure they’re not being recommended just because they’re a mate, or worse still, a random one-off networking contact.
  • Check out referrals and testimonials and ask to speak to some of their clients. Of course, nobody is going to give you the details of a dissatisfied customer, but at least you’ll get a feel for them and know that they’ve satisfied some!
  • Compare the offered price to that of other suppliers to see if you really are being offered a good deal.
  • In the case of a car or other expensive piece of equipment, have it professionally checked before making a commitment. The seller may not be aware of any problems or may have different standards and expectations to you. Is the head gasket or radiator about to go? What sort of state is the computer hard drive in?
  • In the case of recommended holiday accommodation, don’t make the assumption that the person raving on about how great it was has the same criteria for comfort and amenities that you do. Look the venue up on Facebook or one of the travel review sites to see what others have to say.  

And finally, when a business referral turns out to be apples rather than a lemon, don’t forget to personally thank and acknowledge the person who passed it on to you. You might even want to confidently pass it on to others. 

Have you ever been left with a sour taste in your mouth after being recommended a lemon? What would you do differently next time when dealing with business referrals?

“ I’ve learned the hard way that recommendations and referrals should be checked out just as thoroughly as cold contacts. ”
 
Wendy Buckingham

Wendy Buckingham provides independent information to assist soloists who want to add coaching skills to their portfolio.

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