Marketing is often seen as an intimidating concept for many entrepreneurs and small business owners.
The word conjures up images of flashy advertisements, extensive budgets, and complex strategies.
However, my recent conversation with a friend opened my eyes to a different perspective on marketing.
She kept saying she doesn’t do marketing and she’s “not very good at marketing”. After listening carefully to her, I couldn’t help but disagree.
What she was doing, in fact, was a subtle yet highly effective form of marketing that has allowed her small business to flourish.
The Common Misconception About Marketing
Before delving into the story of my friend’s marketing success, let’s address a common misconception: that marketing is synonymous with advertising.
Many people believe that marketing begins and ends with Facebook advertising campaigns and media advertising such as TV and radio. While these are indeed marketing strategies, they represent only a fraction of what marketing truly entails.
Marketing, in its essence, is about creating and maintaining relationships with customers, understanding their needs, and delivering value. It’s about building trust and fostering loyalty, which can happen through various means, not just through traditional advertising.
The Unconventional Approach
My friend, let’s call her Sarah, has always had a different approach to business.
She runs a small software consulting firm, specializing in custom solutions for her clients.
Nothing makes her happier than customizing her software for her clients and later, training her clients on how to use this software. She is always busy but as she says, she really loves her business and that is why she has been in this business for almost 20 years.
Sarah is not a fan of flashy advertisements or extensive marketing budgets, but she is a firm believer in the power of relationships.
She does not actively advertise her services, yet she has managed to build a thriving business.
Sarah’s secret weapon is her referral programme.
Whenever one of her existing clients refers a new client to her business, she offers them a commission for their efforts. This commission serves as a token of appreciation for the referral, but it also creates a powerful incentive for her clients to actively recommend her services to others.
Paying for Results
What makes Sarah’s approach so compelling is that she only pays for results.
Unlike traditional advertising methods, where you pay upfront and hope for the best, Sarah’s referral commission system ensures that she invests in marketing only when it generates real business.
This approach aligns perfectly with the idea of value-driven marketing – you pay for what you get and you get what you pay for.
Consider A Referral System For Your Business
Sarah’s unconventional marketing strategy is brilliant and offers several advantages:
- Cost-Efficiency: Since she only pays commissions when a referral becomes a client, Sarah avoids the high upfront costs associated with traditional advertising. This makes her marketing budget far more predictable and manageable.
- Trust and Credibility: Referrals are one of the most trustworthy sources of business leads. When someone recommends a service to a friend or colleague, it carries a significant weight of trust, leading to a higher conversion rate.
- Client Loyalty: By offering referral commissions, Sarah reinforces her commitment to her existing clients. This not only encourages them to refer others but also solidifies their loyalty to her business.
- Sustainable Growth: Over time, Sarah’s referral network has grown exponentially, leading to a steady stream of new clients. Her business continues to thrive without the need for aggressive marketing campaigns.
Marketing doesn’t always fit the traditional mold of advertising and promotion.
As my friend Sarah has demonstrated, marketing can be subtle, relationship-focused, and highly effective. In fact, for any small business owner, marketing should be relationship-focused.
By implementing a referral commission system, she has managed to build her small business while paying for results rather than merely promoting her services.
What we can learn from Sarah’s story is that marketing is not limited to advertisements and flashy ways of promoting one’s business.
It’s about understanding your customers, fostering trust, and delivering value.
Whether you have a small business or SME, the power of word-of-mouth referrals and incentivized marketing should not be underestimated.
In the end, what matters most is the results you achieve, not the methods you use to get there.
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