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When you need an auto mechanic or an air
conditioning repairman, where do you turn for
help? Sure, some people turn to the yellow
pages. But most will turn to friends and family
and ask if they know of anyone who can do the
work.

The best place for your business to be positioned
is to be the business on the tips of the tongues
of the people asked to make the referral.

THE 300 RULE

Preachers, funeral directors and people in a few
other professions have learned "the 300 rule"
through their own personal experience.

"The 300 rule" states that the average person
knows 300 people on a friendly level. Wedding
planners tend to make reservations for 300
guests. Funeral directors tend to need to make
room for 300 mourners. You get the idea.

DOODLING WITH CIRCLES OF INFLUENCE

Imagine your circle of friends, family and
acquaintances, a.k.a. your circle of influence.
Now, draw your circle of influence as a circle on
a blank piece of paper.

Next, contemplate the people in your parents'
circle of influence. Some people who know your
parents also know you. Therefore, you will share
some influence with the people your folks know.
Now draw your parents' circle of influence on your
piece of paper.

Your circle and your parents' circle will
intersect in one area, although the larger
majority of the two circles will not intersect.
If you are like most people, the two circles on
your page at this point looks very similar to the
MasterCard logo.

Now imagine drawing a page full of intersecting
circles, each circle representing the circle of
influence of the people who are within your own
circle of influence. Imagine trying to
encapsulate an accurate rendering of where your
circle and the circle of your friends will
actually intersect.

Some circles will share a large area of space,
while others will barely cover one another.

Actually, you can only imagine at this point what
your piece of paper will look like. The actual
layout of the circles imagined in this analogy is
simply too overwhelming for the mind to
comprehend.

THE BIG PICTURE

300 multiplied by 300 equals 90,000. By using the
analogy of doodles in the previous section, the
average person can actually network with up to
90,000 people! Even factoring in the overlap,
one can still probably network with 50,000 people
through their own circle of influence!

Simply amazing, isn't it?

HERE IS THE SECRET TO YOUR SUCCESS

There are 300 people on this planet whom you have
a reasonable amount of influence. Take advantage
of this fact. Make darn sure that every person
within your own circle of influence KNOWS that
you are in business for yourself, and make sure
they understand what your business offers.

When your friend is asked to make a referral,
they will recommend you.

PASSIVE VERSUS ACTIVE REFERRAL NETWORKING

When people ask your friends for a referral and
your friend mentions your business, that is
passive referral networking.

Active referral networking is when you can get
your friends go directly to their friends and say
"Hey, I have a friend who just started a
business. If you are in need of what he offers or
you know someone who will need his services,
would you please give my friend a call or make
the referral to his business?"

If you can get even a portion of the people in
your own circle of influence to actively refer
your business, then you have built the foundation
to build an advertising campaign even more
effective than the average local television
advertising campaign.

Think about that for a moment.

Most people only dream of reaching 50,000
potential customers with their television
advertising dollars. You now have the knowledge
to reach 50,000 people without spending a single
penny.

About The Author:
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