Why Referral Marketing explodes Earnings

Why Referral Marketing explodes Earnings

referral marketingWe are increasingly in the Relationship Age.  The earnings of a company is proportional to firstly the depth of relationships and then the breadth (a lot of Business people using social media get breadth, without depth of trust in the relationships they are building).

20 years ago, the process for connecting with someone on a business deal was to visit them, get to know them and then, after a ‘courting’ period, the relationship was cemented and a deal was done.  Often, the deal was affirmed by a hand shake, because trust was built.  It produced depth of understanding and trust.

Then the internet came along and contact became desensitised with web pages, emails and now texts.

But times are changing, we are going full circle to times when depth matters.  There is so much information available about a business these days that purchasers are almost 70% of the way to making a buying decision when they reach on online presence.  Trust STILL has to be earned.

Referral marketing can circumvent the dance of the customer/supplier relationship building.  Social proof (referrals) is by FAR the best way of generating business.  Its low cost, high impact and potential customers are more likely to trust you if they are referred by a mutual ‘friend’.

Even though there is a ‘movement’ to say that times are changing and people are changing, the underlying base psychology of people remains the same and (thankfully) we are going back to the days when DEPTH of relationship matters not just superficial ‘multi touch’ marketing.