Referrals happen almost on a daily basis. You are participating in the referral game either as a receiver of a referral or as a giver of a referral. The referral can be as simple as what movie to watch this weekend or which M&A attorney to use for a possible M&A transaction in the near future. With our busy schedules, it is possible that we may not give a request for referral that kind of attention that it truly deserves.
Referrals are similar. Getting a wrong referral can mean a huge cost as there is an opportunity cost involved going down in the wrong direction. When someone asks you for a referral, they typically do so because of the trust they have in you. Give them a wrong referral and there is a dent on the trust level. Repeat the stupidity again and you probably won’t get a request for another referral from the same person. When you refer someone, it is important to note that:
b) the level of trust that that person has placed on you is on line
Before you jump and provide a referral as soon as you get a request, think carefully for a few seconds and ensure that whenever you refer someone both parties will benefit and there is a possibility of a win-win. You can guarantee that every time but it is absolutely important that you do your best to get to that scenario.
Note: It is DEFINITELY better to say that you don’t have a referral (if you don’t) rather than giving a wrong referral. After all nobody will have all the answers to everything 🙂