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The Inbound Growth Blog covers all topics relating to an integrated marketing strategy. We write about inbound marketing, social media, integrated marketing strategies and the sales process.

How to Kill an SMB Referral Source Without Really Trying

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Posted by John Beveridge on Oct 16, 2014 12:12:56 PM

How one small business owner killed the goose that laid the golden egg.

Simpleton_finds_The_Golden_Goose_-_Project_Gutenberg_eText_15661.jpgLike many of you, I'm an SMB business owner. I love my customers - they're what gets me up in the morning. I generally like and care about them and do everything I can to help them be successful. They weren't easy to get, so my mission is to do everything possible to keep them.

I also believe in John Lennon's "karmic wheel". I think it's important to help people without expecting anything in return. Unfortunately, sometimes no good deed goes unpunished. I wanted to share an experience from my career as an example of how not to conduct yourself when someone generously refers you to a source of new business. 

Don't let these things happen to you.

Rule #1: Don't embarass the person who referred you to a source of business.

Most of these rules will elicit the following reaction from 95% of us: no sh!t. Unfortunately, there are people out there that do these things. If someone refers you to a piece of business, make sure you treat them like royalty. Don't create a situation where the customer asks the person who referred you, "I thought you said that this person would help me out."

Your goal in selling referral business is to get as many referrals as possible, not burn everyone involved to kill any chances of a second referral. Don't:

  • overcharge the customer
  • miss deadlines
  • lie, cheat or steal

Again, pretty basic stuff, but some of you out there haven't figured it out yet.

Rule #2: Show a little bit of gratitude

If someone refers you in on a sale, find a way to thank them. Take them out to dinner. Give them a gift certificate. Pay them a referral fee. Perhaps you could even refer them to a piece of business. For crying out loud, do something! 

There are givers and takers in this world. Most of us do a little giving and a little taking. Some of us do nothing but take. I avoid those people like the plague.

Rule #3: Don't forget that it's a small world

You may think that you won't suffer any consequences when you burn a referral source. Those of us who have been around a little while realize that people change seats. That person you burned may be your boss one day. When you need help, you will find that no one wants to help you. Burning bridges is a foolish thing to do.


You might have guessed that these words of wisdom come from real-life experience. You would be right. Even us old hands get fooled now and then. But in the end, the person that loses is the one that kills the goose that laid the golden egg.

Topics: Sales Process

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