The myth of referrals. Why they seldom work as advertised unless you do this…

I did a survey a short time ago on LinkedIn, asking “Are referrals getting you as many new clients as you want?”

I’ll admit I was a bit surprised at the results. If you’re similar to me, most everyone we talk to casually seems to say, “Yup all my business comes from word of mouth and referrals.”

Turns out that’s not the case.

I was shocked at the results.

85% said that “No”-they weren’t getting the new clients they wanted from referrals.

Yet, so many people persist in thinking and acting that referrals are the best way to grow their business.

In some ways, I understand.

It doesn’t cost money, and for some reason a lot of entrepreneurs think that getting new clients should be “free”.

Which is amazingly dumb, and probably is one of the larger contributors to a 75% failure rate of new businesses within the first 5 years.

Look, I’m not saying that referrals aren’t good, cause we both know they are.

But there are severe limitations on relying on them for new clients.

1) Getting consistent referrals means that you have to be pretty well known in affluent circles for what you do. It’s a numbers game. My bet is that you’re probably not well known enough in order to make the math work in your favor.

2) They’re inconsistent. You never know when you’re going to get a whole flock of them, and when it’s going to be absolutely crickets. The “feast or famine” cycles that are inherent to referrals take a huge toll on your psyche and self-confidence.

3) You have no control over quality. Referrals come because “someone heard about you”. Not became they are a preselected ideal client.

But they are free…you have to give them that.

So what’s the alternative?

A couple of thoughts. (But be warned..this is tough love so you may not like what I have to say.)

First…set up a budget for marketing, and get it out of your head that client acquisition should be free. Being an entrepreneur is a game for grownups so act like one. If your reaction to that is “But I don’t have any money for marketing” well boo hoo for you.?

Nobody forced you to do what you’re doing. That was a decision you voluntarily made.?

You have a choice.?

Either get your act together and run your business like a real honest-to-god businessperson, or fold your hand and go to work for someone else.

Second…Learn about the options that are available to you to attract precisely the types of clients you want to have.

Get some input and ideas from those who have actually implemented marketing systems. People who know what works and what doesn’t.?

Hardened veterans with a few scars and bruises.

Remember, you don’t have to do this all by yourself.

Which brings me to the power of mastermind groups and why you should seriously consider joining one.

Masterminds have been around for a long time. Benjamin Franklin started the first one in the US and his ran for a very impressive 38 years.

The list of those who have gone on record about how masterminds benefited them includes Warren Buffet, Richard Branson, Henry Ford, Charles Schwab, Oprah Winfrey…on and on and on.

The real challenge with joining a mastermind is not finding one per se, rather the biggest challenge is finding (and getting accepted into) the right one.

You want to be in a room with smart experienced people, who are focused on the same issues you are.

I’ve been a member of a number of mastermind groups. They all were valuable but some more so than others.

The ones that provided the greatest value were small, met frequently and were laser focused on what I was working on.

Which brings me to something you should consider.

I’m starting a program called The Affluent Marketing Inner Circle Mastermind.

There’s information HERE.

I only want 10 people in the group.

I don’t want people who think about stuff but never implement anything.

I want people who are smart, cool, take their business seriously but not themselves.

And finally…I want people who are focused on the affluent market.

If that’s you, then you should join.

If not, there’s probably a better group out there for you.

There’s additional information HERE.

Check it out.

Thanks

Mark