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Friday, October 05, 2007

75 per cent advertising, 25 per cent referrals?

Marketing guru Michael Stone at makes this (to me) surprising statement in his latest newsletter.

Let's be clear. The lack of leads so many are experiencing is due to working by referral only. Referrals should not make up more than 20 - 25 percent of all your business. If referrals are over 25 percent of your business, when the economy hits a little bump in the road you will see a drastic decline in calls into your company and sales. Advertise and stay with it. Let referrals be the icing on the cake.
You can subscribe to his newsletter by completing the form at his website. You may also want to read his Markup and Profit blog.

1 comment:

Daniel Smith said...

Mark, this is very interesting. What do you think about taking the idea and making it into an editorial piece with a local spin? I would be interested to hear what local contractors think about it. (plus maybe it will subconsciously remind them they need to advertise more! Ha)