A lead is a contact from an unknown source who is not expecting a call, like a list of new homeowners. A referral is an opportunity to do business with someone who knows about your business and is expecting your call from a mutual acquaintance. While the standard definition of a referral requires prior knowledge and expectation of contact, exceptions can be made if someone requests a less stringent definition based on their needs, like using addresses from for sale signs as leads.

1. White Rose Harrogate Lead v Referral

2. A lead is a contact that may come from any number of sources. The contact is generally not expecting your call. For example, if someone gave an insurance agent a list of people who just bought new homes, that might be considered a good set of leads. Unfortunately, none of the prospects are expecting a call from the agent, and it is really not much better than a cold call. A Lead Source: Dr Ivan Misner BNI Podcast may 16 th 07

3. A referral is the opportunity to do business. This is BNIs definition. "The opportunity to do business with someone who is in the market to buy your product or service. It's not a guaranteed sale, but an open door to discuss your business." When you contact them, they already know who you are and what you do. It is stronger than just a lead in that this prospect has talked to your mutual acquaintance and is generally expecting your call. Hence, they are referred. They know you will be calling, and they know what the topic will be. A Referral Source: Dr Ivan Misner BNI Podcast May 16 th 07

4. This definition was developed as a basic standard for most people to follow. However, there is one notable exception: if someone re-defines this standard for themself, that is okay. In other words, if someone says, "I'll accept something less than this definition as a bona-fide referral for myself," that's okay with us. Without that, people should use the basic standard. Example: Val asked for the addresses of houses with for sale boards so she can mail them her brochure, Val can’t drive round the whole of the Harrogate area looking for For Sale boards but as a collective we do. Now this doesn't meet the basic standard for most people. However, in Val’s case it was okay because she requested a less stringent standard be applied to her based on her needs. The Exception Source: Dr Ivan Misner

5. www.harrogateonline.com/bni Tracking Referrals Record: From Contact name Company Contact Details Telephone Email Rating Status Notes Value