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The Downside of Referral Business

Referral business is the BEST, right? It usually takes little to no effort to get and it often leads to highly qualified sales leads. However, there is a downside to running solely on referral business. It can be super inconsistent. 

90% of my clients come to me with a growth mindset. Business is going well and they can attribute much of that to all the referral business they have generated throughout the years, however, the inconsistency is killing them. They never know where their next sale will come from and they have big growth plans that, frankly, require big revenue gains.

Time to break this down. If you're feeling the referral business pains and gains, let's talk about your next steps.

Lean Into It. If you are getting referral business, it is because you are amazing at what you do. Pause and pat yourself on the back 🎉 because we all just don't do that enough.

...alright, now that your little self-celebration is over, let's talk strategy. 

Referral business is all about awareness. If people are consistently reminded of who you are and what you do, you will be top of mind when a need arises.

  • Start posting regularly on your personal LinkedIn about your business and the services that you offer
  • Build an email list of current clients, prospects, and referral partners and contact them regularly (at least twice per month)
  • Set up at least two 1:1 networking meetings per week. Start chatting with people in your network who could end up being clients or referral partners

Diversify. While referral business is amazing, it isn't everything. Real business growth requires going outside your network and reaching people who have no idea who you are or what you do.

Before you start diversifying your sales efforts, make sure you have a strategy in place. With referral business, you have the cushion of the person who referred you vouching for you. When you are attracting people who don't know you, it is important that they land on content that positions you as an expert worthy of their time and money.

  • Run targeted social media ad campaigns promoting a lead magnet to people who match your ideal customer profile
  • Attend industry events and make connections with people who fit within your target market
  • Guest blog for industry giants and/or speak at their events and conferences to reach a larger audience and further position yourself as an expert in the space

Feeling Overwhelmed?

Trust me, inaction is not the answer. Get started by tackling one thing on the above lists at our co-working power hour tomorrow. By getting together with like-minded boutique agency owners and consultants, you will be in the right headspace to start knocking some of these big tasks off your to-do list.

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