The Value of Turnover in a Referral Group

Referral and marketing groups have certain dynamics and mechanics, one of which is a certain amount of member turnover in a group. Typically about a third of the people in the group are very long-term members, about a third of the people stay for about a year, and about a third are transient (i.e. they don’t last 6 months). It’s no surprise that the most successful members in groups are long-term members. There are a number of reasons for this — they are better networkers and they understand how to make groups pay-off; but perhaps most importantly, they recognize the value and benefit of some turnover in a group.

Member turnover in a group can benefit you and the group in 3 ways…

1. Expands your active referral network. If you’re a web designer in a group, and there’s a business coach who you’ve gotten to know, who has become a good referral source for you, and who then drops out, it can actually work to your advantage. This person will likely continue to refer you because you’ve really gotten to know them and have gained their trust. And, now you have an opportunity to add a new business coach to your group who can also become an ideal and active referral partner! Some turnover in a group can help you multiply your active referral network.

2. Connects you with a whole new circle of influence. When people join a referral group, you often get a quick, big hit with referral opportunities because they bring their network with them. As an example, let’s say you are an insurance agent and there’s a great financial manager partner in your group that drops. The odds are he’s already introduced you to much of his/her existing network. Now you get a new financial manager into the group and he/she has a whole new network of potential introductions for you. Again, turnover can lead to a quick windfall of new referral opportunities, when you add someone new in that profession.

3. Injects new energy. Finally turnover helps inject new energy, ideas and resources into a group that can lead to a whole new source of opportunities.

Embrace turnover in a group as an opportunity, and a natural part of your referral group. When you do this, and simply look to replace those professionals with others in their field, you’ll recognize and realize the benefits!