Why don’t you hear more about word of mouth and referral marketing?

Every business gets referrals, and some businesses survive on referrals and repeat business alone.

Not only that but referrals, on average, bring much better customers than any other method of marketing.

So why aren’t you being flooded with information about how to market better this way?

Well, this came up in a discussion I had with Vince Golder as about how much he wanted to get his information about referral marketing out to small businesses. He was amazed that there is so little information out there.

Me? I’m cynical.

After all my years online selling “Word of Mouth Magic” I’ve developed my own theory as to what it going on.

It’s all about following the money trail.

Question:

Who has a vested interest in getting you more repeat business and referrals, ie who makes money out of it?

Answer:

Almost no one.

The main people who make money are people like me who are selling products and services to improve your marketing. There are a few of us out there online. Vince is now one too.

Business coaches may tell you about the power of word of mouth and referrals, if they are familiar enough with running actual businesses to have learned it for themselves.

There are also networking groups that will promote referrals, and Ivan Misner from BNI is one of the most vocal speakers and authors, but other networking organizations both online and offline will spread the same message.

The customer relationship management (CRM) software vendors will encourage follow-up marketing, but usually don’t bother with referrals.

Follow-up services, like Christmas card companies, gift-giving service, loyalty program providers, viral referral software makers, and web-to-print client services like HoardClient and SendOutCards will also have some vested interest.

So all this might not seem like just no one, but in comparison it is.

Question:

Who has a vested interest in NOT letting you find customers by referrals?

Answer:

Almost everyone else who will talk to you about marketing.

All advertising companies and the media, from newspapers, radio, TV, Google, and on and on and on.

Marketing agencies who are often running advertisements and will build relationships with those who are running the companies above.

Direct marketers who are working with buying and selling lists and working their backend.

Copywriters who have a lot more work when they are selling to a cold audience than if you are selling to your past customers.

Yellow pages, and all other phone companies and listed directory companies.

The postal service because they sell lots more stamps if you send to a mass of prospects rather than a targeted group of clients.

These are all massive companies and institutions, that at best have no reason to suggest you use word of mouth methods, and at worst have specific reasons to hobble your efforts at getting referrals.

You don’t have to think of it as a conspiracy so much as the sheer weight of self-interest.

I want to you consider this whenever you get advice on your marketing strategy.

Hopefully you are not getting your marketing wisdom from the newspaper advertisement seller. You know, the one who says you have to run an ad at least 6 times before people will have seen it often enough to respond to it, or that you need to take out a full color page so that people notice it.

But even if you have an independent person, are they advising you from their own experience in small business or are they following the rest of the crowd?

I’m up front.

I get paid for helping you get more repeat business and referrals.

Go against the crowd…

http:/www.WordofMouthMagic.com/magic/

-Martin Russell

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