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4 Reasons Networking & Referrals Are a Risky Business Strategy

networking and referralsAre you a service provider who relies solely on networking and referrals to bring in business? While these strategies can be effective in the short term, relying solely on them alone can be a risky move for your business in the long run.

In this article, we’ll discuss the pitfalls of relying only on networking and referrals, and why investing in online marketing is crucial to ensure the growth and sustainability of your business. So, if you’re a service provider who wants to stay ahead of the competition and grow your business, keep reading to learn more!

When you are flush with business, you have no time for networking

Networking is an essential way for service providers to connect with potential clients and build relationships. However, when you are busy with a lot of work, it can be challenging to find time to attend events, follow up with contacts, and maintain those relationships. This can lead to missed opportunities and a slowdown in new business growth.

Referrals are nice to have but can’t always be relied on

While referrals are a great way to generate new business, they are not always consistent or reliable. Your clients may not always remember to refer you – or they may refer you to someone who is not a good fit for your services. This can be problematic if you are looking to work with a specific type of client or focus on a particular kind of service.

Limited reach

When relying only on networking and referrals, you may find that you are only able to reach a limited audience. This can prevent you from expanding your client base and growing your business over time. If you’ve ever wondered how to expand your customer base and generate leads for your business, Hubspot’s lead generation beginner’s guide is a perfect place to start.

Relying on networking & referrals alone is risky

Even if you’ve built a successful business through networking and referrals, there will come a time when those tactics are not enough to sustain your growth. When you have no time to network and your referrals have dried up, you’ll be left with no new leads and no way to generate new business. Without having invested in online marketing, you may find yourself struggling to keep your business afloat during lean times.

Key takeaways

In conclusion, while networking and referrals can be effective ways to grow your service-based business, they are not enough to sustain your growth over the long term. To avoid the risk of lean times, it’s crucial to invest in online marketing, which can help you reach new clients and build a consistent pipeline of leads. If you’re unsure where to start with online marketing, check out my related article, “How to Choose the Right Type of Marketing for Your Business,” where I discuss the different types of marketing available and help you choose the ones that are right for your business.

What to do next

If you’re looking for professional marketing support to generate new leads and grow your business, book a call with me. We’ll discuss your specific needs and get you a game plan to move forward. By investing in online marketing, you can ensure that your business remains healthy and profitable for years to come!

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About Monica
With her unique background in journalism and marketing, Monica V. Reynolds believes every entrepreneur has a story worth telling. She helps service providers craft their most authentic, magnetic message, website, and marketing.

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