Entrepreneurial Money Management

Marci talks about the financial issues & concerns business owners’ face when running their own company.

Pros & Cons of a Referral-Based Business

  • Comments 13

Most of us start out as entrepreneurs by leaving our 'day jobs' over one or two very hot prospects for solo work. We run the numbers and figure out that we could actually make more money by working from home in our pajamas, so we dive out of the corporate waters and into the sea of uncertainty. 

In an ideal world, these one or two customers that we start out with begin spreading some referral business to us, and then these referrals send referrals, and so on.  Many soloists can operate like this for decades. Many of us find the referrals drying up after about two years.  

Let's look at the pros & cons of a referral based business:

PROS

  • Generating new business doesn't cost any money (no ads, no traveling, no time spent networking)
  • Referrals are usually hot prospects by the time we talk to them, so we don't need to learn how to sell
  • The relationship our clients have with the referral builds credibility for our products/services

CONS

  • We don't get to choose who we do business with. Referrals happen any time anywhere with anybody
  • If we have a customer service issue with one client, it affects all of their referrals
  • When the referrals stop (if they stop) we have to start our business over again, or go back to "work" 

Personally, I prefer the blended approach where I take referrals as they come, but also spend 30% of my time building new relationships that may turn into referral sources. With this plan, I can target vertical industries that are personally interesting, or seek out companies of a particular size or geographic location.  

By being a little more pro-active about business development, I've seen my business stabilize financially, and the kind of work I'm doing is more rewarding because I am doing projects that I chose.

Do you have a referral-based business? What are your plans for business growth?

Your comment has been posted.   Close
Thank you, your comment requires moderation so it may take a while to appear.   Close
Leave a Comment
  • * Please enter your name
  • * Please enter a comment
  • Share
  • Always sell yourself.  Don't stop just because you're getting referrals.  Volunteering and being part of the community are great ways to get yourself known without paying money!

  • This blog is good regarding the business point of views Everyone should read this content because it may help for their business.

  • Hello! I have stumbled over your post and decided to add several words. If you stumbled with the problem like unfinished papers then it's time to use writing service help. Such service is always ready to solve all your writing problems even in a short time.

  • The advantages and disadvantages of representative referrals demonstrate that a deliberately overseen program can be something to be thankful for, however, everybody must get an opportunity to gain the prizes of referral here and there.

  • Accounting is a better degree because it is more specific.  Every business needs an accountant and it can be a stepping stone into management.

  • Upsides and downsides of a Home-Based Business versus a Brick and Mortar Business One of the greatest inquiries you'll have to reply as you define plans to begin your business is the place you will find it.

  • I have gained a lot of useful knowledge when reading your article, thanks

  • Our team of trusted dissertation writers works on your task with thorough concentration. This results in the completion of work even before the deadline.

  • Motivations can be an extraordinary method to fuel your referral program and persuade clients to prescribe your business to their loved ones.

  • If you are looking for research paper translation services in Singapore then you must consult with Singapore translators. They provide exact research paper translation in a quick turn around. We have cautiously chosen for their subject familiarity and precise translation skill. We can assist you to convey your ideas precisely.

  • For best Dissertation Assignment Help in UAE come to UAE Assignment Help. We have more than 10+ years of experience in assignment writing. Our writers are highly professional and they are giving the best assignment help services for all local as well as international students. Our dedicated team of 250+ assignment writers is giving 100% plagiarism free content for all the assignment help. We are providing our services to all the students studying United Arab Emirates University and Dubai University.

  • Looking for the best Thesis Writing Help in New Zealand? NZ Assignment Help gives a great opportunity to you. We are giving many of the assignment help services at an affordable price range. Our team is highly qualified and they are giving the best quality assignment writing services. We have a large team of 250+ assignment writers and all of them are ph.D. holders. We are serving 100% unique content for all the assignment help we are giving top-quality content with on-time delivery guarantee.

  • looking for the best Cafe in Jaipur for fun with friends? Eclectica Restaurant and Cafe give you best sitting experience on Roof-Top. We are serving pure vegan food in our restaurant. Our highly professional team of chefs is giving the best quality food in your plate.

Page 1 of 1 (13 items)
Your comment has been posted.   Close
Thank you, your comment requires moderation so it may take a while to appear.   Close
Leave a Comment
  • * Please enter your name
  • * Please enter a comment
  • Share