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  • Welcome to Fractionality #5: The Referral Engine

Welcome to Fractionality #5: The Referral Engine

Gday Fractional Friends!Everyone's hunting for the perfect lead-gen system, but the math on referrals is undeniable: higher close rates, better clients, faster sales cycles. Yet most fractionals treat referrals as happy accidents instead of building actual systems around them.This month, we're breaking down exactly how to build a referral engine that delivers predictable results – including the simple 10% rule that's filling calendars across our community. Whether you're just starting out or looking to level up your lead gen game, this playbook will help you create a sustainable pipeline built on trusted relationships rather than hoping for random introductions.

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Quick Hits 🎯

small Teams, Massive Output. The new Flex is hitting 100M ARR with 30 people.A wave of AI-native startups—like Gamma (28 people, 50M users, 100M rev, profitable), Anysphere, and ElevenLabs—are rewriting the rules of scale. Fewer people, more output, and zero interest in raising massive rounds just to bloat headcount.

Why this matters: It’s the Superhumans Rising thesis in action—experienced operators with AI tools are building billion-dollar companies without the bureaucracy. Plus I am super loving Gamma App right now, it’s incredible.

📖 Read the NYT story .

We’re seeing what lean, AI-native companies can do — and what that means for fractional operators: smaller teams, faster execution, and more space for senior expertise

⚡ TODAY'S DROPS

The Referral Engine

Build it and they will come.

Yes, I know. Wil. Stay with me folks

But here's the kicker - referrals don't just magically happen because you're awesome (though I'm sure you are). You need to deliberately build your referral engine. Let's break down how to do it without the corporate fluff.

The Mindset Shift: Stop Calling Them "Referrals"

First up - stop thinking about "asking for referrals." You're asking for introductions to people you might be able to help. This tiny language shift makes a huge difference in both how you feel asking and how others respond.

When you frame it as helping someone they know, you're providing value to both parties. They won't make the intro if they don't believe you can add value, so there's no need to feel weird about it.

The 10% Referral Fee Rule

One of the norms I'm trying to establish in our fractional ecosystem to incentivize referrals is what I call the "10% In, 10% Out" rule:

  • 10% In: Pay a 10% referral fee to other fractionals who refer business to you

  • 10% Out: Receive a 10% referral fee when you pass work to other fractionals

Why this works:

  1. It creates a financial incentive that drives real behavior

  2. It formalizes the referral relationship beyond just goodwill

  3. It ensures everyone is motivated to make quality matches

  4. It builds a sustainable ecosystem among fractionals

Other fractionals will quickly become one of your best sources of qualified leads - they already understand the value proposition of fractional work, and they're talking to exactly the kinds of companies that hire people like you.

Scripts That Actually Land

Forget the awkward "do you know anyone who needs my services?" Here are real scripts that work:

After an unsuccessful discovery call:

"Look, it seems like we're not the right fit right now, but I feel like you have a good handle on what my offering is. Do you know anyone I should be talking to?"

To a happy client:

"Really glad we could help with [specific win]. I'm currently looking to connect with other [specific role] at [specific company type] who might be dealing with similar challenges. Anyone in your network come to mind?"

To your broader network:

"Hey, I'm focusing on helping [specific company type] solve [specific problem]. Would love to get your thoughts on this approach and see if anyone comes to mind who might find it valuable."

Make It Ridiculously Easy

Don't just say "let me know if you know anyone who needs help." That puts all the work on them. Instead:

  1. Be specific about exactly who you're looking for

  2. Draft the intro email for them (yes, actually write it)

  3. Make it clear how the process will work

  4. Follow up (but don't be annoying)

Example: "If someone comes to mind, just reply to this email with their name, and I'll draft a no-pressure intro you can forward if it feels right."

Strike When the Iron is Hot

Time your asks strategically:

  • Right after you've delivered a big win

  • When a client gives you unprompted praise

  • During your regular review sessions (if they're going well)

  • When wrapping up a successful project

  • When someone reaches out but isn't a good fit

  • After a "no" (seriously - some of your best intros will come from prospects who said no)

Make It Part of Your Process

This isn't a one-time thing. Build it into your business:

  • Add it to your engagement wrap-up checklist

  • Set quarterly "network nurture" reminders

  • Keep a "happy customer" folder for testimonials

  • Track where your introductions come from (and reciprocate!)

  • Have your introduction template ready to go

The Reality Check

Your first few referrals might feel awkward to ask for. Do it anyway. The people who know and trust you want to help - they just need to know how.

And remember - as a fractional, you don't need hundreds of leads. You need a handful of quality ones. A solid referral engine can easily deliver that if you build it deliberately.

Action Steps (Because What's the Point Otherwise?)

  1. This week: Identify 3 happy clients or contacts and ask for specific introductions

  2. This month: Create your standard introduction request template

  3. Ongoing: Track every lead source and set a reminder to nurture your referral relationships quarterly

  4. Always: Send a thoughtful thank you for every introduction (whether it converts or not)

  5. Starting now: Commit to the 10% In, 10% Out rule with other fractionals

Building your referral engine isn't complicated, but it does require intention. Start small, be consistent, and watch it become your most reliable source of quality work.

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Community News 🗞️: Partner Update NOAN Ai

OK fractional folk, this one's a game-changer.

I've been testing NOAN for the past few weeks and holy crap - this is the tool I wish existed when I started my fractional journey. It's not just another AI tool; it's specifically designed for people like us who juggle multiple clients and projects.

What makes NOAN different?

  1. Client separation that actually works - Run separate projects for each client (your base subscription includes 5 projects) with dedicated knowledge bases that don't bleed into each other

  2. It remembers everything - Upload docs, meeting notes, strategies, and NOAN actually uses them when you chat (not just pretending to like some other assistants)

  3. White-label client mode - Give your clients an AI assistant with YOUR branding. Instant value-add to your fractional services.

  4. Content creation that doesn't suck - I used it to create sales sequences, email templates, and even workshop materials in a fraction of the time it usually takes me

Look, I'm not easily impressed by AI tools (most are just ChatGPT with a fancy coat of paint), but NOAN is built specifically for fractionals who need to manage multiple clients and deliver fast results.

You can even connect it to Zapier and therefore push directly to the 3000+ tools that Zapier connects with. You can watch my mind being blown in real time during the demo here.

See it in action

Neal Mann (the co-founder) did a walkthrough just for our community showing how fractionals can leverage NOAN. It's in the Workshop Library if you want to check it out. You can also see the Exclusive Offer for FEC Members in the Partner Hub.

Like What You See in the Community?

Want to check it out? Watch a quick platform walkthrough here

New Workshops Available:

  • Lead Generation Masterclass - building and automating your pipeline using Apollo

  • Using AI as a Fractional - super fun session with Gisela Montello-Bruce where we kicked around all the different tools we are using including LLMs, list building and research, sales, workflow and automation, presentation tools and more.

Upcoming Workshops:

  • Structuring Your Fractional Business - choosing between sole trader, trust or Pty Ltd

  • Tax Strategies for Fractionals - maximizing your tax effectiveness as a fractional

  • Personal Branding for Fractionals - this is going to be a killer session, a really pivotal aspect for building your fractional business.

    Dates dropping soon. Only available to FEC members.

Join FEC now and get:

  • Access to masterclasses

  • AI-powered member matching

  • The complete Fractional Playbook

  • Free access to AI Powered Fractional Coach Zacbot available 24/7

Not ready to join yet? Follow us on LinkedIn to stay in the loop.

Member Spotlight 👋 Jerry Beale

"Tell us about your pivot to fractional work - what sparked the change?": After two decades of working for large advertising and design agencies around the world (UK, USA, Asia, Australia, NZ) 8 years ago I decided to try my hand as an independent brand consultant, focusing on brand strategy, communications planning and generally helping businesses create and sustain deeper, more resilient connections with their customer audiences. These days, I have a delightfully varied mix of clients in NZ, Australia, USA and Asia containing both agencies and working direct with clients. But my independent status has also meant that I've been invited into a wider range of conversations and challenges than would be usual via an agency relationship. This has seen me lead the re-establishing of a reset range architecture, lead explorations into new products and services, advise on cultural and stakeholder communications and operate in a role closer to brand and marketing manager than just brand and communications strategy.

"What's your superpower as a fractional leader?": My training in sociology and behavioural science, plus my years of experience in brand strategy, means I can see both sides of the equation: what the brand and business wants to achieve or create, AND what people (our customers / consumers) are genuinely looking for based on how they are feeling about their lives. Then bring both sides together in a powerful, emotionally resonant way.

"Describe your ideal client in one sentence": A brand or business facing a challenge, with the open-mindedness and curiosity to be comfortable exploring a range of solutions that include non-traditional and bold.

"Share one unexpected joy of fractional work": How much I learn from working on the inside of a business.

"What's your #1 tip for new fractional executives?" Stay curious and find fresh perspectives whenever possible.

"What should founders know before hiring their first fractional?" That the best people are often hard to fit into a tightly defined role. And that's a good thing.

"Where can people connect with you?" Please come and say hi on LinkedIn: https://www.linkedin.com/in/jerrybeale/

🛠️ Tactical Gold: The Referral CTA in your email signature

What it is: A low-effort, high-frequency way to prompt referrals without ever sending a separate ask.

Why it works: You already send dozens of emails a week. That’s free real estate. A subtle nudge in your signature keeps you top of mind without ever feeling pushy.

How to use it: Add a single line like this to your email signature:

“Know a founder struggling with [your niche problem]? I always appreciate warm introductions.”

Tweak it to suit your tone. That one line has landed more gigs in this community than most cold outreach sequences.

 🤖 AI Tip of the Month: Claude + gmail, drive and Calendar integration

Oh my lord, my current favourite LLM now has email and calendar integration.

Which means you can simply ask things like:

“What meetings do I have today that I need to prep for?” and it will return something like this:

clearly a busy day for me today 😀

then you ask follow up questions : tell me who is in the X meeting, or give me a summary of any emails relating to meeting Y.

Level up

You can then start to get a little crazy with and ask things like ‘based on my calendar next week, what should my priorities be?”

For emails try ‘what urgent emails do I need to respond to today?’

The Setup

It’s super easy, just head on over to the integrations page in Claude settings and you can connect. No, I don’t care about privacy concerns JUST GIVE ME THE POWER.

What’s Next?

Claude have actually announced that the Zapier MCP is available, but only for the Max ($$$) accounts. the tl:dr on this is that this will allow you to access any one of the 3k+ tools that zapier connects with, directly from your Claude chat interface.

so you could do things like develop a blog post, then send it straight to webflow. write a contract and publish it as a google doc. the mind boggles.

Want to nerd out about AI workflows? Hit reply - I love talking about this stuff.

The Rise of Fractional Leadership: A Lasting Shift in the Business Landscape - Forbes hits an absolute banger here with money quotes like “Fractional leadership isn’t merely a stopgap solution for resource-strapped businesses, it’s an enduring model that promises to redefine how organizations of operate”. Unsurprisingly, I agree.

Four Day Work Week.. it works? - UK's massive four-day work week experiment just dropped results, and they're fire 🔥 Over 90% of the 61 companies that tried it are keeping it going, with productivity maintained and burnout down by 71%. The secret sauce? The 100-80-100 model (full pay, fewer hours, same output). While critics say it won't work for 24/7 operations like healthcare, similar trials in Iceland and New Zealand are showing equally juicy results. Could this be the end of the road for Ford's century-old five-day grind? As fractional execs, we've been all about optimizing time and maximizing impact for years - looks like the rest of the world is finally catching up to what we already know: work smarter, not longer, and deliver results that speak for themselves.

Massive win for Epic, huge loss for Apple in their antitrust case. In any other year, this would be a leading story in tech. It will have massive flow on ramifications across the ecosystem, but in this the year of our Lord 2025 it’s hardly getting a run.

Agency is Eating the world - another banger, this time from Gian Segato, founding engineer at Replit. Very in tune with this edition’s themes on AI powered Superhumans and how the future belongs to those who get shit done.

That's it for this edition! Thanks for reading folks.

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