Why “all of my business comes from word of mouth” is holding you back.
Most small business owners are running way too lean when it comes to marketing.
They’re relying on just two or three lead generation strategies. That means up to 95% of their business comes from some combination of word of mouth and another source, like Google ads, a networking group, or their favourite social media platform.
They’re getting new business, so it’s easy to get comfortable and hold back from testing the water elsewhere. But what happens when one of those channels slows down?
Maybe a platform changes its algorithm. A new competitor bids higher on Google. Your referral stream slows down. Now you’re scrambling – learning a new skill, testing a new message, running a new campaign, trying to find the leads to make up the difference while under serious time and financial pressure.
As an entrepreneur, I don’t want to live with that kind of stress.
I’d rather see a business running 10 different marketing strategies, with each bringing in 10% of their leads. They’re not worried if one falls short, because they can just turn up the dial on another. They’re in control.
Build a Deeper Playbook
A healthy lead generation playbook is diversified. It has a mix of ‘tried-and-tested’ strategies along with fresh experiments. Here’s how to expand yours:
Step 1 – Track what’s working now.
Where are your current leads coming from? What are you doing that’s working well, and where do you need to stop wasting your precious resources? Tracking leads consistently will help you spot opportunities and gaps.
Step 2 – Cover 3 Types of Lead Generation.
Direct: Getting out and talking to people. Think outbound calls, direct mail, door-knocking, and personal outreach.
Digital: Tactics that show up in search: your website, SEO, ads, online directories, and AI platforms
Relational: Communities, networking, events, and referrals.
A resilient company has considered all three styles and uses at least a little of each. If you’ve leaned all the way into one category, it’s time to diversify.
Step 3 – Mix short, mid, and long-term strategies.
Think about how quickly each strategy will result in new business. Some (like outbound sales and paid ads) will be hunting strategies, leading to a quick sale. Others (like relationship-building and SEO) will be farming strategies. You might plant the seed today, but you’ll have to nurture it for a while before you can eat.
If you’re only hunting, you’re stuck on the treadmill. Only farming, and you might starve to death the day you suddenly need to generate quick cash. A resilient business has a healthy mix.
Delegate with Confidence
No one is great at everything. If digital marketing isn’t your strong suit, for example, you might choose to hand that function over to an expert as soon as possible. The same is also true for your direct and relational strategies.
Here’s my rule: Don’t delegate a strategy you don’t understand.
That doesn’t mean you have to master it! But you should be confident about what good results look like, so you can make smart decisions, ask better questions, and spot red flags.
Rather than hiring someone to do something you’ve never tested, go the other way. Build a working system, then hand it off to someone with the skills to run it consistently and level up your results.
This Week’s Takeaway
Lots of business owners tell me, proudly, that 95% of their business comes from word of mouth. Building a business on reputation, referrals, and goodwill is a great thing.
But reputation alone isn’t a marketing strategy.
If you want a more resilient business, diversify your lead generation playbook. Build an engine, hand it off, and keep testing new ideas and techniques.
Obviously Awesome: By April Dunford
If you’ve ever felt like your product should be flying off the shelves but just isn’t landing with the right people, Obviously Awesome by April Dunford might be worth a look. It’s a practical dive into positioning to help clarify what makes your product valuable and who needs to hear about it, through case studies, anecdotes, and processes you can test out for yourself.
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