Referrals instead of cold calling: how networking works for small businesses

Ask a trade business, a tax firm or a small agency in Berlin where their best clients come from. The answer is almost always the same: through a referral. Someone knew someone who did good work.

Why referrals work so well

Anyone who recommends something puts their own name on the line. That's why people only recommend those they trust, and that's why the person receiving the recommendation trusts it. Cold calling has to build that trust from scratch. A referral brings it along.

Trust takes time

Nobody recommends someone they've spoken to once for five minutes. Trust grows when you meet again, when you hear how someone talks about their work, and when you notice that they help even when there's nothing in it for them.

That's why we meet regularly in the Berliner Netzwerk, once a month, and that's why coming back again and again matters more than handing out as many cards as possible the first time.

What makes a good network

• The mix. The more different industries there are at the table, the greater the chance that someone has exactly the contact you need.
• No pressure. If every evening is a sales round, people eventually stop listening. That's why our rule is: introduce yourself, yes; sell, no.
• Commitment without obligation. You should be able to rely on the group. With us, coming twice a year is enough to stay a member.

How to become someone who gives referrals

The quickest way to get referrals is to give some yourself. At the next meetup, listen carefully to who is looking for what, and think of your own clients and partners. A good connection that you make is remembered.

How different networks in Berlin compare is shown in our comparison of networking groups.