We often get the question:  "What's the difference between selling, business networking and referral marketing?"

Often it is good to think of your "sphere" of opportunity to grow your business as a circle with four inner rings, and to know that each ring typically has its own set of focused efforts needed to achieve results.

While this is not a complete article on the topic, here's a simple description of each ring of the universe. 

Current clients.  (note:  typically a "customer" is one who has purchased one time.  A "client" is a customer who has made repeat purchases).   These are people you are actually rendering services to, and of, course, you might also be looking for "up-selling" opportunities with them -- or asking for referrals from them.

Typical focused efforts:   customer service, up-selling and asking for referrals

Prospective customers.  These are people you've identified are in your target market, and likely have a need for your service.  This is usually the group where most of your active, traditional "marketing and selling" efforts are directed. 

Typical focused efforts:  setting appointments for meetings, making phone calls, sending a brochure, advertising in a trade journal, etc.

Referral sources. These are people that are "connected"  to your target market in some way, and are therefore "qualified" to send you referrals.  These could be current or previous clients.  But they can often be partners, vendors or others related to your field.  For example, if you are an advertising copywriter, your referral sources might include printers and graphic designers.

Typical efforts:  staying in touch, asking for referrals

Network.   The outer ring of the circle is your "networking" arena, which is a much larger universe of people.  These might include family, friends, neighbors, people you meet at your gym or daughter's soccer game. It also includes members of professional associations, chamber of commerce, etc.  It can really be anyone in which you have some sort of personal relationship.

Typical focused efforts: Being willing to join groups -- and form relationships and interact with the people in them.