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Clients

A referral is somebody spending their own reputation on you

Recommendations produce the cheapest work a small business ever gets, and they arise from a mechanism most people misunderstand and therefore fail to support.

By Tomas Bergqvist3 min read

Side view of positive young African American woman in classy outfit shaking hand of smiling ethnic male partner while standing on city street after business meeting
Photograph by Sora Shimazaki via Pexels
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Why referred work is so much easier

A referred enquiry arrives with the hardest part already done. The buyer is not deciding whether you are competent, because somebody they trust has effectively answered that. They are deciding whether the price works and whether you are available, which are far smaller questions.

That is why referrals convert at rates ordinary enquiries never approach, and why they cost almost nothing to acquire. It is worth distinguishing this from a client coming back themselves, which is a different mechanism with different requirements. Here a third party puts you in front of somebody who had never heard of you.

The person referring you is taking a risk

Understanding a referral means understanding what it costs the referrer. They are lending you their credibility with somebody whose opinion of them matters. If you’re late, expensive, unreachable or rude, the damage lands partly on them.

That explains most of what otherwise looks like reluctance. People are not withholding recommendations out of meanness; they are protecting a relationship. It also explains why the strongest referrals come from clients whose own work went smoothly rather than merely acceptably — a good outcome makes the risk feel small.

Being referable is more specific than being good

A recommendation has to be made in a sentence, in the middle of somebody else’s conversation, by a person who is not in your trade. If they cannot summarise what you do, the recommendation does not happen, however satisfied they were.

This is where a lot of capable businesses lose out. Someone who does several loosely related things is difficult to introduce, whereas someone with a clear description gets mentioned whenever that particular need comes up. Being easy to describe is not a marketing nicety; it’s the mechanism by which other people can talk about you when you are not there.

Asking, and why the blunt version rarely works

The direct request — do you know anybody else who needs this — is uncomfortable for both parties and usually produces a polite nothing. It asks the client to search their memory on the spot for a need they may not have registered.

A narrower question does much better because it is answerable. Naming a type of person, a situation, or an organisation makes it a recall task rather than an open one. The timing matters as much: the moment to raise it is when the work has just gone well and the client is pleased, not months later in an email that exists only to ask for something.

Make it easy to pass on

Give the referrer something they can forward without writing anything themselves — a short description, a link, a page that explains what you do in language their contact will understand. A recommendation that requires the referrer to compose an explanation is a recommendation that will be postponed.

It also helps to be visibly easy to contact. A referral is a fragile thing that survives roughly one obstacle, and an out-of-date number or an unanswered message is enough to end it.

Thanking, and the question of paying

Acknowledge every referral, whether or not it turns into work, and tell the referrer what happened. That single habit produces more subsequent referrals than any other, because people are far more willing to do something again when they know the first one landed.

Whether to pay for referrals is genuinely contested. In some trades a fee is normal and openly discussed; in others it changes the character of the recommendation, since a paid referral is no longer purely an opinion. If you do it, be transparent about it with the person being referred, because a commission discovered later damages exactly the trust that made the introduction valuable in the first place.

There is also a source of referrals that most small businesses neglect entirely, which is other suppliers rather than clients. People who serve the same customers without competing for the same work — adjacent trades, complementary services, the person who does the stage before or after yours — encounter your ideal client constantly and have no reason to send them anywhere in particular. Being the name they think of costs nothing more than staying in touch and occasionally sending something their way, and it’s a considerably more reliable stream than waiting for satisfied customers to happen upon the right conversation.

Clientsclientsreferralsreputationcommunication
Tomas Bergqvist
Reporter, Biz Wealth Focus

Tomas has written about starting out, pricing, cash flow for most of the last decade and prefers a plain explanation to a clever one.