Q: How
will the Do Not Call Registry here in the United States affect my
ability to follow up on referrals for new business?
A: The
Do Not Call Registry in the United States is great for companies
that focus on getting a large part of their business through
word-of-mouth. It is, however, a huge blow for telemarketers.
The main purpose of this registry is to give people added
protection against telemarketers by prohibiting phone calls to
consumers who have put their phone numbers on the National Do Not
Call Registry. The registry has been accepting listings since June
27, 2003, from consumers who choose not to receive telemarketing
sales calls. Consumers can place their telephone numbers on the
registry by making a toll-free phone call or by going to the
registry Web
site and signing up their personal numbers (including mobile
phone numbers). Registrations are good for up to five years and
must then be renewed to stay in force.
Content Continues Below
Two separate rulings earlier in 2003 established that the FTC
lacked the authority to run the registry. However, this prompted
Congress to pass, and President Bush to sign, a bill clarifying the
FTC's role in record-breaking time (which illustrates the level
of frustration that the public has with telemarketers).
At the time of this writing, the Do Not Call Registry is fully
functional, with more than 54 million phone numbers registered in
the system. More importantly, more than 50,000 complaints have
already been filed reporting violations of the rule. Telemarketing
abusers may be subject to a fine of up to $11,000 for each
infraction of the registry rules.
Clearly, you do not want to do anything that would put you in
jeopardy for this type of fine. Therefore, the way that you follow
up on referrals is very important because you do not want to be
confused with a telemarketer when calling someone on the
registry.
Here are some points to remember when following up on a
referral:
- The registry provisions do not apply to business-to-business
calls, except for telemarketers selling nondurable office and
cleaning supplies to businesses. Other than that exception, you
should be safe to follow up on a referral by contacting the person
on his or her business phone number.
- You may follow up on any referral to a home number (even those
on the registry) if, and only if, the person you are calling has
given you written permission to call them. An electronic signature
or e-mail is acceptable as written permission.
- There is an "established business relationship"
exception to the Do Not Call regulations. The regulations define
this as anyone who has purchased your product or service within the
past 18 months. This means that you may contact anyone (even if
they are on the registry) if your company has done business with
them in the last year and a half.
For more information on how the Do Not Call Registry may apply
to your business, visit the registry's Information for Business page.
This new legislation is great news for any business that relies
heavily on referrals and understands and follows the above
procedures. For those of us who think referrals are important, look
at the new regulations this way--the U.S. government has just
legislated something that makes referrals more important than ever
and cold-calling more difficult than ever. This should be a wake-up
call for the many companies out there who are still training their
sales force to build their business through telemarketing.
Networking, relationship marketing and referrals are the wave of
the future for doing business. If you want to be successful in
today's business environment, it will be increasingly important
to build skills in this area.
Ivan Misner is the founder and CEO of Business Network
International (BNI), which has more than 2,700 chapters
throughout the world. He is also the author of five books,
including his New York Times bestseller, Masters of
Networking, as well as Entrepreneur Press' forthcoming
Masters
of Success.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.