Referrals are not scalable! Even though hearing something like, “I’ve got a lead for you” is a great feeling it’s not going to grow your business. If referrals are in your growth plan, then you need a better business plan.
Building a business based on referrals is like sitting on a one-legged stool. As soon as you let go of it or put too much weight on it, the stool will collapse. The same is true for a business based solely on referrals.
Referrals are great, but you’ll only get referrals for similar businesses that you’re already working with never for bigger business. So, you’ll never be able to grow your company because you’ll always be working with the same level of clients.
The only 2 ways to grow your business are to: DO MORE WORK or CHARGE MORE. So, if you want to be able to charge more, you’ve got to have clients that can afford to pay more. Or if you decide to keep prices the same and do more work, then you’ll have to hire a bigger team which means your profits will decrease. Either way — you cannot grow with referrals alone.
So instead of relying solely on referrals, it’s important to pick a niche that your agency can dominate. What would it do for your business if you were top of mind in your category? When people think of computers, many think of Apple. When they think of search engines, most think of Google. Wouldn’t it be great if your agency was the first thing that popped to mind when speaking about a particular niche or specialization?
If you keep doing the same thing everyone else is doing but do it a little better your business will grow. But it will grow at a slower rate because you’re pacing with everyone else and maybe just a little better at sales or marketing. Howeverm if you do something totally different and put your own spin on it, you can OWN it. Tahat’s why I want you to pick a niche.
I see so many agencies struggling with lead generation and it’s because they don’t know how to give their salespeople direction on who to go after. On the flip side, I see a ton of agencies crushing it because they have a solid niche, they know what prospects to go after and they nail it every time.
What’s the most profitable niche? I don’t know. No one can tell you that, but you. You have to choose a niche you have knowledge and passion in. Be honest with yourself and you’ll figure it out.
Are you relying on referrals? What niche is your agency considering? Comment below and tell me how I can help you grow easier and faster.
SUBSCRIBE NOW https://www.youtube.com/playlist?list=PLDvZHFVeqEMq58q6tMoyMK-ufpp0ysoVP
Thanks for watching. I hope you keep up with the daily videos I post on my channel. Make sure you subscribe and share your learnings with others. Your comments are why I do this, so please take a second and say hello.
JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER.
Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012.
Now, Jason leads http://JasonSwenk.com, a unique media company & consultancy helping marketing agencies grow & scale their agencies faster by applying the framework that he used to grow, scale and eventually sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals.
Jason currently hosts two shows that are available for download…
The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision makers that cut through the BS, focus on exactly what works and what doesn’t; and
SwenkToday a daily VLOG that documents the entrepreneur journey of building another multimillion-dollar business, where he shares the latest strategies, and answers the most burning questions entrepreneurs have.
TUE &THUR VLOG #SwenkToday
Q&A from my digital agency audience
Ask me A Question
(Digital Agency Interviews)
Follow me here:
Music by epidemicsound.com