Referrals feel great. There is no better compliment than knowing that a client is so pleased with your work that they send their contacts and even their friends to you. You know you’ve done quality work and this type of growth proves it.
But there is a danger that comes with referrals. They can make you comfortable and give you a false sense of security. Unfortunately, there is no stability in word of mouth growth for small businesses. Referrals are unpredictable. No one knows when a referral will come knocking on their door.
Relying on referrals means that you have little control over the number or types of clients you take on. You feel pressure to take on every client that comes along because you never know when the revolving door will stop. And satisfied customers will send over similar types of clients, ultimately making your client pool homogenous. This means you no longer control the direction of your business.
This strategy presents a risk.
If you don’t think a uniform client base is a risk, think about the past year. COVID-19 decimated some industries while others boomed. Imagine if you were pigeon holed in the hospitality industry because your referrals led you in that direction...
As the leader of your company, shouldn’t you be the one that controls the future of your company?
By having your own marketing and sales strategy, you can bring in the clients of your choosing at the pace that works best for you. Set your own growth targets, diversify your client base, and control the future of your company. By the way, this will also lead to more and diverse referrals.
Referrals will always be there for businesses that maintain their excellent standards. They are something to be proud of, but depending on them as your sole avenue for growth, can be a trap that is easy to fall into.