Word-of-mouth marketing has been used for a very long time. Things have changed a lot and many are looking at it as if it is archaic. I have benefited from referral marketing a lot. This is just to tell you that it is still one of the most effective marketing strategies out there.

Word-of-mouth marketing is present in our daily activities. Many small businesses may not consider this form of marketing because its visibility is low when compared to other forms of traditional marketing like TV, bill-boards and Radio.

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Trustworthiness

After having a great success in referral marketing, I still think it is one of the most powerful methods of promoting your business, especially if it is a startup. Many customers out there including you reading now will trust word-of-mouth from family and friends who have used or know a product or service than other forms of advertising.

The Internet & Social Media

The Internet has eased referral marketing. Social media has innovated referral marketing a lot. It is now very easy for one to connect with friends of family or friends of friends without actually ever meeting them. Digital technology has transformed transactions like never before. You don’t need to receive cash directly from someone. You can be paid electronically.

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Nevertheless, you may not get the benefit if your only referral source is from family and close friends. I am not saying they can’t be of help. There are many other sources where an average consumer can get information that is trusted which will bring you more sales.

Referral marketing is good for startups

What most small business owners in Africa fail to know is that they have a huge advantage over most big companies out there. They are more closer to their customers. Small business owners can conveniently deliver personal attention to each of their customers easily. This will make them to feel very special, hence you will be getting a lot of referrals from them.

Recommended: 5 Fascinating Referral Tactics That Can Help Your Business Grow