Written by: Vickie Sullivan | March 26, 2015
Are Referrals Your Best Market Strategy?
Generating referrals has become a top priority for a lot of mid-market business owners. What’s not to like? A good referral can collapse the sales cycle. Access to a few qualified buyers are worth a lot of outreach, right?
Not necessarily. Two big blind spots here:
- Many referrals can be just as unprofitable as those who referred you. So if you want more of your best buyers, those referrals need to come from — you guessed it — your best clients.
- Buyers get multiple referrals all the time, so don’t assume you’re the only one. And even if you are the only vendor in the running, clients can decide to do nothing or use internal resources.
Bottom line: like all market strategies, boosting your referrals is a mixed bag. Use this only if you have a lot of best buyers with access you don’t. Whatever you do, don’t use this (or any strategy) as the only source of growth.
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