Five Reasons Your Leads Referral Group Sucks (Part 1)

I do a lot of leads referral marketing, and I've been to more groups than I can count (and I get invited to new ones all the time – they are, at least in my area, thick on the ground and a key tactic for small businesses in my area).

But sometimes, I run across a group and I’m like, “Wow, this group is just… wow.”

And I do not mean this in a good way.

Here's five things I've seen or heard of in groups that seem to be missing the point - you get two in this post, and three in part two (ooh, a cliffhanger!)

1) It’s too hard to become a member

I understand that you want to only associate with people that are as invested in the purpose of the group as you are.  After all, you don’t want any “free riders” and you want to protect your time and money investment in the group.

But my goodness, the hurdles some groups are asking people to jump over – before they are able to participate long enough to understand if all that effort is even worth it – are ridiculous.

I've heard of groups that require five or more one-on-ones with members (or even just a select group of members – like a “membership committee”), bringing five or more guests not in already “locked in” industries, make five or more referrals (or even worse - sales or bookings), and then the membership (or that committee) votes you in or rejects you, and then you have to also pay a yearly fee.  And you have to do this within a specific time frame or you start all over.

Yikes!  Are you trying to create a leads referral group, or are you creating a country club?  If it’s that hard to get in, aren't you limiting your group to a very small, select group?  How will you get fresh blood – and referral sources – if you make it so hard to join?

2) Industries “Locked In” are too broad

Okay, so, let’s say a group has a graphic artist in the group, and he’s a “locked in” member (no other people can join in his industry).  His name is Sebastian. His main focus is designing logos, print pieces, and signage for businesses, but Sebastian also has a little experience in designing web pages and making online videos.

You're such a jerk, Sebastian.

Rowanne shows up to the group, and Rowanne, while also a graphic designer, is completely focused on building web pages and making online videos.

While yes, Rowanne’s business overlaps Sebastian’s, if the group allows both, they can both specialize and both can work together (and refer to each other).

But in many groups, Sebastian would not “allow” Rowanne into the group, in order to protect his leads (because he might want that web/video business).

This is horrifically short sighted, people, and a sign of a membership that is so afraid that the product/service they offer is so poor it can’t survive without a highly protected leads market.

To me, it smacks of low self-esteem and lack of confidence in yourself and your product.  Groups made up of people like this tend to be full of drama, gossip, and a waste of time.

I'll list the three other reasons in Part 2.  What do you think so far?  Have you encountered groups like this?