Defining a Qualified Referral in PRE
On the surface, understanding the definition of a qualified referral is simple. “The person you are referred to is expecting your call.” But when we examine referrals that represent an ongoing business relationship, we must become more specific in defining a qualified referral.
Here are some examples of qualified referrals:
When you establish or renew your homeowners, automobile or business insurance, this is a qualified referral.
When you are using a product or service that is on autoship or automatic payment, but is subject to cancellation at any time, this is a qualified referral each month you continue the product or service.
When you take out a mortgage, loan or lease a car or other equipment, the original transaction is a qualified referral.
When you open a bank account or establish an investment account, this is a qualified referral. When you add to an investment account which is optional for you, this is a qualified referral.
If you meet with another member to discuss business and seek a basis for doing business together, this is a qualified referral. If the meeting does not result in a transaction, it’s still a referral since the attempt to do business was real. For instance, one on one meetings simply to build relationships are extremely valuable and important but do not count as a referral if there’s no attempt to transact business with one another.
Of course, any time you make a purchase from a member retailer, this is a qualified referral. In the case of several people collectively ordering from a member for routine products or services, the collective order represents one referral. An example of this would be multiple lunches from a member restaurant delivered to one address unless each lunch is from a different PRE member. Another example would be multiple articles sent to the dry cleaner at the same time – one referral. Or if a person has multiple ads with a print publication running in a particular issue, the collective weekly invoice would represent one referral. If a person orders flowers for several persons at the same time, the total bill would represent one referral. If a person is receiving chiropratic treatments, the weekly total fees represent one referral. When a second generation referral customer makes a monthly payment or is on autoship or automatic payment, these are qualified referrals.
Here are some examples of transactions that are not qualified referrals:
When you make a loan or lease payment, a bank deposit to savings or checking, all of which are a result of a single business arrangement into which you entered, these are qualified referrals. In other words, it is a qualified referral if the exchange of money represents a new business transaction. If the exchange of money sustains a transaction or pays off a previous commitment, it’s not a qualified referral. The rule of thumb we all should follow is that the transaction represents substance, not fluff.
We have addressed the known issues at this time, but recognize that from time to time particular transactions may need to be reviewed to determine the status of that transaction as a qualified referral. Should this come up for you or your chapter, please communicate with your Area or Regional Director for a ruling.