Should You Rely on Referrals and Word of Mouth Advertising?
You’ve probably met those people who say that they get all of their business through referrals and word of mouth. And, admit it, when you encounter someone from this nirvana, don’t you feel a bit jealous? Not to mention annoyed?
After all, you’re probably doing all sorts of promotional things like:
- Advertising
- Direct mail
- Sharing your business cards at networking events
- Optimizing your website and blog for the search engines
- Facebooking, getting LinkedIn, Twittering, and other kinds of social networking
- Seeking media publicity
- Cold calling and warm calling
Whew! That’s a lot of work. Getting business to come to you via referrals and word of mouth sounds a lot easier. And it is. But, like anything else in business, it needs to be approached with care. First of all, you need to tell people what you do.
For example, in my monthly e-mail newsletters, I make it a point to include this verbiage: “My primary focus is on designing websites and printed materials for science, technology, engineering, and math (STEM) programs.” The preceding sentence is followed by examples of what I’m working on or have just completed.
My June 2010 newsletter noted works-in-progress for:
- A professor of law and natural resources
- A university research laboratory
So, the e-mail newsletter reader has a pretty clear idea that I’d be interested in doing more business with academics. Which is true.
But I want to branch out and work with STEM-focused government agencies, and, since the American private sector is coming back to life, high-tech companies. The law and natural resources professor is very well-connected with several U.S. government agencies, so I plan to ask him for the names of those who might need my services. Then I’ll contact them directly.
Tip: If you’re waiting for word of mouth from academics, you’ll be waiting a lo-o-ong time. You have to ask for names. Then make the contacts.
There’s Danger in the Comfort Zone
While it’s comforting to know that your services are good enough that you get all of your business through word of mouth, be careful. There’s danger in the comfort zone.
In his book, Value-Based Fees: How to Charge – and Get – What You’re Worth, Alan Weiss says, “My experience is that word of mouth is where many consultants plateau. They begin to get ‘fat and happy’ and complacency sets in. Even though most consultants are relatively young when they first hit this phase, their learning stops and they assume they’re going to continue to grow simply by supporting the same practices that helped them get to where they are.”
Ouch.
Not only has the learning stopped, they’re believing that the future will look like the past.
In addition to what Weiss notes, you can get bored in the word-of-mouth comfort zone. Which means that it’s time to get out and make some new client-friends.
So, dust off those cold and warm calling scripts and hit the phones again. Get back out to some networking meetings. See if you can get your name out there via some media publicity, pay-per-click advertising, or the social networking circuit.
Leave a Comment
Having gotten most of my freelance work through word of mouth I can definitely relate to this post and I am sure plenty of freelancers can.
The points about keeping yourself sharp and avoiding the tendency to get lazy seem right on to me! Especially if your referrals are landing on similar sources, meaning the referred work is pretty similar to the original.
However, from a designer perspective I start to get really bored when I start to do the same thing over and over again for similar clients. I always force myself to do some learning or envelope stretching simply because I hate the repetition.
If you are being referred a lot be sure to take it away as a positive though! Clearly people like your work!
My work (http://www.macjunky.nl) comes to me mostly via Google and other search engines, but I after a few yeas now I have the added bonus of a lot of work coming via referrals. This is great as the only reason they would come to you is that they have been told that your work is good.
A nice thought to start the day with.
The only thing I have to get onto is the social networks. I did dabble but for my business it doesn’t really work (I think) but I will once again try it…
Word of mouth has worked well for me, but in the event of a move. Other forms of advertising will be most important.
word of mouth has been really good to me over the years, and as an added bonus getting a random call from someone who was referred by a satisfied customer makes the day that much better
My take on this issue…
most of my business comes from word of mouth as well, I do think this is the best way, simply because you listen to what your friends and your colleagues suggest for you so when you get to a place where you were recommended I find it much easier. the “sale” comes smoother.
Of course you shouldn’t rely on this alone, and the comfort zone is a big no no when you are a freelancer but I do think that 70% is a fair number for business coming from word of mouth.
for a professional (not a company) freelancer I think blogging is the best way to market yourself when not counting on word of mouth, I do blog quite often and this brings me business as well.
Word of mouth advertising is certainly great for any freelancer out there because that is genuine advertising that can go a long way in securing clients.
People are always more likely to choose someone or something that their friends or colleagues have personally recommended to them. This is why it is so important to really focus on getting out and networking with people.
I find that going to tech meetups in my area are a great way to network, get referrals, and ultimately, get new client leads. If you are not using meetup.com to join up with local groups and then head out and network, you are really missing out on a key part of successful freelance advertising and marketing.
Holy crap, it’s like you were reading my mind. I’m totally in the comfort zone you described, which to my dismay has been quite uncomfortable lately. Thanks for the tips and keep the articles coming!
Rely on it? Never. But it’s a nice bonus and nothing makes my day a little brighter than being able to send a thank you note to a client who’s just referred me to someone else. And then once in a while you get an email from a client who was unhappy with your work and contacts you specifically to tell you he’s told someone else how much you suck. Speaking from experience, that is a real downer.
Works the best, if they are showcasing your work to someone else then they have faith in your abilities.
This depends also on your desire to grow, not just your checkbook or your network/client list… but your folio and body of work. Getting decent clients through word of mouth ensures you a foot in the door to different opportunities.
I find, in terms of taking on too much or too large of a job, that smaller jobs tend to come in through door via word of mouth… the larger jobs, that would require additional help, come primarily through comp bids, web sources and cold calls (you still have to hit the pavement).
My current clients are very busy people, mostly high end clients. Relying to get more business through word of mouth is a lazy route to take.
The one pitfall nobody has talked about is that getting freelance work through a friend of a friend almost always carries with it the promise of “mate’s rates” — which seems to often go hand in hand with high client expectations, low budgets, short deadlines and lots of ‘bonus’ un-invoiced services.
Nothing beats kicking a goal and generating value for a client that you have targeted in a competitive vertical.
I am giving “mate rates” to anyone just to stay a float. Phoenix, AZ, has to be the worst market to work as a freelancer. Someone will want the work done in a rush, but there is no rush to pay you, even at “mate rates.”
Don’t know how anyone here does it. My work is solid. I never have received a referral through my family, or friends, selfish pricks. Always had to go to ad boards, or to past business acquaintances for work, and those sources are starting run lean.
I now get all of my business from referrals. Last year it was 80%, now I very rarely take a new client on that was not introduced to me by a past client. It’s at a point now where I unfortunately can’t say yes to everyone that contacts me, or they aren’t able to wait until my next opening.
Though I find some of the things in this article interesting. I have to be honest , I don’t think they are what creates great referrals.
In my opinion there is one simple thing that has created so much of my referral business. Each and every website I create, I create with the intention of absolutely impressing my client, and exceeding their expectations. I take the time to give my clients great customer service. I listen to what they need and I get to know each of their businesses well.
What creates great referrals is impressing the socks off of the clients you have now.
Martha-
While it’s certainly important to definitely not rely on word of mouth advertising, it can be a helpful asset to a company. People are more likely to listen to friends and family telling them about how much they love a product than they are to listen to an advertisement. The list you gave of promotional ideas for your business is great too.