The Referral Trap
Referrals feel like the best kind of business. The lead is warm, trust is already established, and close rates are high. So what is the problem? The problem is that you cannot control it. When business is good, referrals flow naturally. When the market tightens or a key relationship cools, the pipeline dries up overnight. Most businesses only realise how dependent they are on referrals when the well runs dry and there is nothing behind it. By then, you are already three months behind where you need to be.