Why Referrals Matter

I was just reading a post by Aaron Wall (of SEOBook.com) about how successful people, especially in the Internet Marketing arena, seem to become jerks as they become successful.

It’s SEOBook, so obviously it’s a great post, but it got me thinking about another topic that comes up a lot: Untouchable Marketing’s Marketing.

It’s a pretty common joke around the UM offices that this company has never had to avail itself of its own services. Sure, we show up for searches like “denver web marketing consultant” and we’ve done the minimum due-diligence on optimizing our site, but the point is that exactly 0 of our current clients came to us via the contact form on our website.

So how did we get enough business to sustain the company? 100% referrals.

Why Referrals Are So Great

In Million Dollar Consulting, Alan Weiss talks about peer-to-peer referrals being the ‘Platinum Standard’ of marketing for a consulting firm, and I couldn’t agree more (he also mentions that you should carry a nice pen, which is something that I do not agree with, as the Pilot G2 is the finest pen ever invented).

The standard explanation for why referrals are great is that there is no better way to convince someone that you can deliver what you say, than to have his friends convince him for you.

However, I think referrals are great for another reason: screening.

In the world of business (as you can read in Aaron’s article referenced above) there are people who want the universe for a nickel. They will bargain, argue, and tear apart every single line item in a proposal. In the end, they aren’t happy with the results.

By getting a referral from a mutually-trusted acquaintance, you end up screening potential clients ahead of time. It’s unlikely that the small-minded “deal-makers” who want to nickel and dime you to death would be friends with your better clients. Their personalities are incompatible.

Personal referrals protect both the client and the consultant, and that is why I always recommend that you find a Web Marketing Consultant the same way you would find a good Lawyer or Accountant; because if they have resorted to spending money on advertising, then they need your business.

Keep in mind that the consulting world is very different from most other industries. If you have a repeatable process that would apply and show results for 90% of your clients (think software like Quickbooks, or an office cleaning service) then you really just want to get the word out to every applicable lead that you can. And that is why there is a vast market for what we do.

Tags for This Post: nickel and dime, pilot g2, marketing consultant, personal referrals, alan weiss, denver web, due diligence

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