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Why Depending on referrals are bad for business (And how To Deal with it)

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Why depending on Referrals bad for your service business
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Is your Service Business dependent on former customers , clients or even Friends and family for referrals? Agree! It’s undeniably rewarding to be recommended to others. However, did you know that referrals can be detrimental to your business? Let’s look at why this is and what you can do to help the company succeed in 2021 and beyond.

Why Depending on referrals are bad for business (And how to deal with it)

1.Your business might stop growing Just with Referrals

The year we started our business, our organisation relied solely on referrals. Money was coming in, and our Business wasn’t bad. But it wasn’t getting any bigger or scaling either. It had become kind of stale and stagnant. We were charging the same price for the all  services we offered.

To be honest, we had no idea who our next client would be. We were in trouble if we didn’t have any leads in the pipeline and our referrals dried up. We didn’t have much traffic on our website, and we weren’t increasing our email list! Since we didn’t have leverage of our own sales process, we had no productive means of increasing leads or sales. Plus, since previous or current clients were kindly recommending us to others, we couldn’t easily raise our rates, as we felt obligated to do so.

“Your blog is a reflection of your company,”

2. Your Leads don’t know anything about your business

When someone refers you to a potential customer or client, you have no idea who they are, and they have no idea who you are. Sure, you came highly recommended, but they have no idea how you function or what to expect from you.

They can know by the time you’ve clarified all that you don’t have the right service for them. Alternatively, they may not be happy with your price point. So, what happens next? You have no idea how your potential customers or clients will respond until they learn all the details. Again, it may work out (and the referral may pay off), or it may not (and you may find yourself in an uncomfortable situation).

How to use content marketing to grow your business

If this sounds familiar to your situation now, What can you do to attract the right customers or clients, create a pipeline of leads, and increase sales to expand your Service Business?

You can begin content marketing right away

We made the life-altering decision to begin blogging on our website in 2018. We hadn’t written much before that and didn’t have much of a social media presence. And, while referrals were fantastic, things didn’t go as planned.

To change this, we began regularly writing and posting content on our website.

To make sure your content is as engaging as it gets, it needs to be valuable, and most often, that means you need to write long-form content so that you have room to include everything you want to talk about,”

Read this book to get on your Business Online Marketing

1.Use your content( Blogs, Infographics, Videos , Podcast) to attract the right customers

We began by answering questions from potential or current clients who wanted to know, for example, how much we charged or how we operated. As a consequence, we’ve written posts like:

1.Why are we so expensive?

2.When you should consider Redesign your website

Plus: We started answering all the questions our Potential Clients are asking in the Google Search when they need web design, SEO , Social media Marketing or any Kind of digital marketing  to Grow their Service business to name a few in the below list.

1. Features to Include in your service-based Business website

2. 5 Things to know before getting your new website

3How to Create a Marketing Funnel that will double your profits

4.  Five warning signs you need a Website Evaluation

And there are plenty more! 

We were able to create a library of content(blogs) on our website over time by writing and posting blog posts on a regular basis, allowing our prospective clients to find all the details they need to determine whether or not we’re the right match for them. Those who do contact us are more likely to have read our content first. And, in most cases, they’ve already made  a decision.

Related: 10 ways to find new Content Ideas.

Content creation is a very resource–intensive process,”

2. Use content to increase your prices or pivot

Our company’s Growth (Financially) was also helped by the sharing of content. We were able to create a base of people who already knew us, either by working with us or through our content, through investing in our email list.

They had confidence in us, enjoyed working with us, and were eager to purchase any additional goods or services we provided.

So, if you want to see a difference in your company in the next  6-12 months, you’ll need a pipeline of leads that are invested in you, know what you’re talking about, and trust you. And the best way to do that is to share content on a regular basis and establish yourself as an industry expert and leader.

Consistent, high-quality posts are critical for a good SEO strategy,”

3. Use content to create a pipeline of leads

We were able to expand our business by using content marketing to drive more traffic to our website. As a result, we were able to extend our email list. And, over time, we built an active group of subscribers as well as a lead pipeline that we could tap into when we needed to sell something.

Bonus Tip:

When you have much traffic to your website Through your awesome content, You can create a passive income stream By Monetising your Blogs.

Wrapping up-Would you like assistance with planning content for your Service business?

So there you have it – the reasons why referrals aren’t always ideal for your Service business and how you can use content to attract the right customers or New Leads. You can think of referrals as an added bonus for your business. But they shouldn’t be your lifeline.

If you haven’t seen the growth you would like in your service business yet, and you are keen to begin the journey soon, then the Digitallydiv Agency may be a good fit.We Help Service-Based Business Owners Like You Nail your Business content That Will Refine Your Message, Generate More Clients And Boost Your Profits

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Div Acharya

Div Acharya

Div, Founder, and Managing Director at DigitallyDiv strong believer and want nothing more than seeing you and your brand become amazingly victorious. With an MBA degree from Swinburne University Melbourne in tow and a great passion for digital marketing & Social Media Marketing, She is here to stay & grow!. She comes with a passion for helping people gain their confidence in Online Marketing.

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About the Author

Div Acharya, Founder, and Managing Director at DigitallyDiv strong believer and want nothing more than seeing you and your brand become amazingly victorious. With an MBA degree from Swinburne University Melbourne in tow and a great passion for digital marketing & Social Media Marketing, She is here to stay & grow!. She comes with a passion for helping people gain their confidence in Online Marketing.

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