Despite what many consultants claim, scaling client services through referrals is still one of the most powerful ways to grow a client services business when you consistently deliver early wins and work with the right clients.
The Myth That Referrals Don’t Scale
Scaling client services through referrals
Sadly, we see and hear it all the time, the dire warning that the referrals gravy train will stop and your business will starve.
Then comes the pitch for their services to help you avoid your impending death.
I firmly disagree.
Let me simplify this to prove my point.
First, let’s set the initial conditions: you’ve built a business that gets the majority of its opportunities from referrals.
Referral-based business definition
A referral-based business grows primarily through satisfied clients recommending the company to others, driven by consistent results, trust, and strong client relationships.
Celebrate this.
It shows you provide a ton of value and have done a great job clarifying what you do, for whom, and the metrics that reflect the value you deliver. Let’s call these wins. When you deliver early wins and keep winning with your clients, you set the stage for both referrals and repeat or long-term engagements.
Why Referrals Sometimes Slow Down
If those consistent referrals and repeat buying trends start to diminish, the first thing you must do is take a hard look in the mirror. In my experience, this is a sign that you’re not winning with your clients like you used to because:
→ Your new clients are the wrong fit
→ You’re expanding services into areas where you’re competent at best
→ Your winning streak with your top clients has come to an end
→ You’ve grown your team, and their skills aren’t on par with yours, so the value drops
→ What was a win before is no longer considered a win
→The brand you won with yesterday isn’t the brand you need to win today
These conditions are common, but the feeling you have as an owner or executive leader is straight-up fear. This is where the people who love to say it’s your fault for relying on referrals step in. That’s fear-based marketing and selling, which is the worst kind.
Winning unlocks client services business referrals
Work Only With Ideal Clients
Instead of trying to scare you, here’s what I recommend:
Always get that early win with new clients and new engagements, then repeat. Full stop.
You only get that win by being clear about what you do, for whom, and the value they get by working with you. Then, work only with clients who fit your ideal client profile. This is brand positioning 101.
Moving too fast to close a deal? Read about the dangers.
Having the high-value expertise to recognize and secure early wins definitely separates you from the pack. And only working with ideal clients ensures success each and every time. It’s a simple formula that simply works.
This doesn’t mean you hole up and become a hermit. You still have to broadcast to the world what you do, for whom, and really push your expertise—showing that you understand your ideal clients’ problems better than anyone. At that point, it’s easy because you’re steadily working with the right clients, consistently getting those early wins, and they’re coming back for more and bringing their friends. Plus, all your new conversations become more fruitful because you know what you do best. There’s no desperation, which creates a real opportunity to build relationships that turn into another winning scenario for everyone.
Feed Your Mind
What I’m Listening To:
Dark, provocative, and two guys who chose influence over commercial success: Suicide (self-titled)The year was 2006, most of my music was still on CD, and I was obsessed with the album: Wonder What’s Next, by Chevelle
What I’m Reading:
I finished Pet Sematary by Stephen King. It was so dark and wicked that I couldn’t wait to be done and see how it ended. But still, I missed reading it immediately. King is the King at that.
I read David Lynch’s beautiful book: Catching the Big Fish: Meditation, Consciousness, and Creativity. As the name denotes, it is a fabulous read on these three important things, and in my life and the line of work I have created that allows me to live unapologetically creative, I thoroughly enjoyed it. And considering my new adaptation to Transcendental Meditation, his descriptions and deep dives into our experiences with TM, ensured I burned through the book in only a few nights.
