Professional Referral Exchange

This is a business networking group that claims to exchange qualified business referrals as opposed to just leads. While the intent is good, the execution is not. Usually a few members give the majority of the referrals (Realtors, mortgage lenders, financial advisors, chiropractors, etc.) and a few members receive a majority of the referrals (contractors, landscapers, anyone who sells an inexpensive product, etc). Most members receive no or nominal benefit from membership and thus a high turnover rate. Members are supposed to give two referrals per month, but it generally isn’t enforced. They claim a 76% closing ratio on referrals, but you should ask to see the data (it is likely outdated or statistically unreliable). The owner derives her income from new member application fees so turnover isn’t such a bad thing. Unlike other networking groups, PRE expects its officers to give their time without compensation to grow their chapters. This, of course, puts money in the pocket of the owner who may show thanks to the officers for many hours of donated time by the gift of a $ 25 gift card and a swift removal from the organization if they don’t please her. There are many good people in PRE and you can make good contacts, but thoroughly analyze the benefit to your business before joining a chapter. They likely won’t tell you about the downsides. Also, make sure you realize that ultimately you are just one of hundreds of people that comprise the owners financial statement.