Tucson is a networking town, and referrals are important for many businesses. The best referral relationships are mutually beneficial. If someone is helping you, it seems logical that you should help them.
Sometimes there are powerful conflicts of interest that cause tension and anguish when you refer business. Imagine this case.
Realtor Joe has been very good for your business and the people he has introduced you to have referred many clients. Now that you are selling your house and buying a new one, you finally have a chance to refer business to Joe. There is only one problem, a close family member is a realtor as well. You feel committed to use your family member, but you donβt want to damage the relationship with realtor Joe. What can you do?
Start communicating as soon as you sense the conflict and let realtor Joe know you value his relationship. Explain the situation and discuss possible solutions. If you ignore it, Joe may hear you bought and sold a house without even talking to him. His feelings may get hurt or he might feel used and unappreciated. If either of those happen, you risk losing a great relationship.
When you discuss solutions with Joe, one possibility might be to share your business. You could list your house for sale with Joe, and have the family member represent you with the purchase. You could alternate future referrals to each party, or give both names and let the client decide who they want to work with.
If you elect to use the family member for both transactions, do something extra for realtor Joe. Learn about his business and who his best referral sources are. Make an introduction to someone who can send Joe some business. Consider creating a speaking opportunity to put Joe in front of perspective clients or strategic referral partners.
With good early communication, you can salvage any referral relationship despite the powerful conflicts that sometimes arise.
