The Real Reason Referrals Are So Important

Summary

• Referrals are a powerful type of marketing because they are free, making them a great option if you don't have much money.
• Customers gained through referrals tend to buy at higher prices, which can increase your revenue.
• People who come from referrals are more likely to refer others, creating a positive cycle of growth.
• If you're not getting referrals, it might mean you need to improve your product or service. Fewer referrals could indicate that more work is needed to reach a level where people are excited to talk about you.
• Focus on getting really good at what you do so that referrals happen naturally. Once your reputation is solid, you can invest in other types of advertising to grow even faster.

Video

How To Take Action

I would suggest focusing on referrals as your main marketing strategy. It's free and can really help if you don't have a big budget. Start by providing high-quality products or services. This makes people excited to talk about you, leading them to refer others.

A good way to get more referrals is to ask satisfied customers to spread the word for you. You can do this by politely asking them to tell their friends and family or offering a small incentive like a discount on their next purchase. This can encourage them and make them feel appreciated.

If you're not seeing many referrals, take a step back and evaluate your product or service. It could be a sign that you need to improve. Focus on making your customers' experiences better. Listen to their feedback and make changes as needed to meet their expectations.

Once you have a steady stream of referrals and a solid reputation, then consider investing in other marketing strategies to grow even faster. But remember, the foundation of this growth is the quality of what you offer. Keep improving and keep your customers happy, and they’ll keep spreading the word about you for free.

Full Transcript

referrals are the most important type of marketing for a variety of reasons number one referrals are free and so if you are poor great place to start number two referrals have higher likelihoods of buying at higher prices third reason people who come from referral are also more likely to refer big picture reason that referrals are so important when you're starting is that if you're not getting any it means you're not that good and so you want to let as few people know that you suck until eventually people find out about how good you are then you can pour gas on the fire and do all the other ways of advertising