Is Referral Marketing the Only Way?

Does it make sense to use online and/or direct response marketing techniques as a building contractor?

The truth is, every business is different. And only you can answer that question for your business. But here are my thoughts on the subject:

Referral marketing is obviously the cream of the crop if you have the choice. The leads come prequalified and, often times, pre-sold by the friend or neighbor who referred them to you.

Who wouldn’t want to stick with a “referrals only” marketing system?

Here’s the problem: How does your “referrals only” system work when the market goes flat?

If your answer is, “yes, it works great”, then kudos to you. If your answer is, “I’m not getting leads like I did two years ago”, then maybe some other marketing tools are appropriate.

Listen to Construction Marketing expert Michael Stone’s advice on referral marketing:

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…. Let referrals be the icing on the cake.”

And yet I hear folks say all the time that referrals are the only way to go. And that using other marketing techniques is a waste of money.

Well, the truth is that most direct response techniques can be done at a minimum of expense. Especially if you have some free time on your hands.

The marketing strategies that make sense for a construction business (or any service business, really) can be broken into four quadrants:

Construction Marketing Jumpstart Guide for Contractors

Browse around on this guide. See if you can come up with a few marketing techniques or ideas you can use right away to get some exposure for your business.

And let us know what you think! Leave a comment below….

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1 Comment

  1. I could not have said it better myself. Great article.

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