In this BNI Education Slot, Jarek Borgul addresses a common area of confusion among members: how to correctly distinguish between internal and external referrals.

He begins by acknowledging that when logging referrals in the BNI app, members are often unsure which category applies. While the labels “internal” and “external” are straightforward, their practical meaning can be less obvious.

https://youtu.be/-VM9IUWfLK8

To clarify, Jarek shares a simple framework discussed with a fellow member, Darren. The key distinction comes down to one factor: who is paying the bill.

An internal referral is defined as a situation where the member themselves becomes the client. For example, if Jarek asks Darren to build him a website and pays for the service personally, this is classified as an internal referral.

In contrast, an external referral occurs when a member introduces someone else—such as a client or contact—who then becomes the paying customer. In this case, the member facilitates the connection, but the financial transaction happens between the referred party and the service provider.

Jarek then expands on this idea by introducing what he calls the “golden goose” referral. This is when a member’s client goes on to refer their own contacts, creating a ripple effect of opportunities. These referrals are particularly valuable because they can generate ongoing business without direct involvement from the original referrer.

Despite its unique nature, Jarek explains that this type of referral should still be classified as an external referral, as the member is not the one paying for the service.

He concludes by reinforcing the simplified rule:

• Internal referrals: you pay
• External referrals: someone else pays

This clear distinction helps ensure accurate reporting and a better understanding of the value generated within the BNI network.

Full Transcript

0:00
The golden goose that keeps bringing the golden eggs—the referrals that we all want.

0:11
When you register a referral on the app, it’s typically named “inside” and “outside.” But which is which, and what does it actually mean?

0:19
I had a chat with Darren this morning before the meeting, and he has a wonderful approach to it.

0:26
An inside referral is the referral that you pay for. So if I was to ask Darren for a new website for myself, I’m paying the bill.

0:37
Therefore, the referral is inside, and that’s how it needs to be logged in on the app.

0:46
However, the outside referral is when someone else pays the bill.

0:53
For example, my customer needs a website and I refer them to Darren. That means it’s an outside referral because my customer is paying the bill.

0:59
But there’s a third type of referral—the referrals that I think we all want and would like to receive.

1:04
The golden goose referral.

1:12
My customer referring their customers to me—the golden goose that keeps bringing the golden eggs.

1:21
And how do we log this? I believe we log this as an outside referral still, because it’s not me who is paying the bill.

1:28
It’s them who will pay the invoice for my work, or your work. So it is an outside referral.

1:36
So anyway, two types of referrals: inside referral when I’m paying the bill, and outside referral when someone else is paying for the work being done.

1:45
Hopefully, that’s helpful. Thank you.