If many say referrals are really important for a business, then why do very few have one?

A very good question asked very often by most of our potential clients at EarlyParrot. There are various reasons why most businesses shy away from referral marketing, some are completely myths/misconceptions and some are reasonable risk factors that need professional advice to manage.

Let’s see the top 2 common misconceptions:

It will require custom development: Most think that by integrating a referral marketing campaign into their existing sales funnel, will require a major rehaul of their funnel and will most definitely include custom software development. It’s a misconception as there are platforms can easily be integrated and will help you extend your sales funnel (without requiring you to change the way how you are selling) without any custom software development.

It only works for BIG guns: Referral marketing can be effective even with small lists. A 50 highly targetted and engaged subscribers are enough to start generating referrals. To prove me right, check out how Hotjar grew out of a referral marketing campaign. They managed to get 60,000 leads in a couple of months. Keep in mind Hotjar at that time was just another startup.

Any blockers you can think of?