How to Grow Your Business Without Advertising

by Andre Bell

Published on this site: February 6th, 2006 - See more articles from this month

As a smart business owner and decision maker you know that your business must continue to grow in order to avoid going under.

Like water that stagnates from sitting too long, a business that refuses to grow will soon lose its vitality. It will simply die.

That's why billions are spent on advertising every year, in the hopes of making more money.

If you're thinking of advertising to grow your business...

Don't!

Despite what ad agents claim, at best only 5-7 percent of new customers ever come from advertising. If any.

The majority of new customers (53%) come from a source few people ever consider, and even fewer try to nurture.

That source of untapped new business are referrals and recommendations from existing customers.

Yes. 53% of all new business is generated through word of mouth. Most of which is unsolicited.

Doubtful?

Think of five restaurants you regularly frequent.

How many of those restaurants did you choose because of an advertisement?

How about where you shop for clothes. Buy your hobby items. And any number of places you regularly frequent.

What causes you to regularly visit those places? Coupons? Advertisements on TV, radio, or the newspaper?

I think not.

If you're like the average person you spend money at places other people recommended to you.

This is especially true when it comes to hiring services.

It could be a service as simple as dry cleaning or as complex as choosing a CPA. You probably relied on a referral. Or several referrals before deciding who to give your money to.

It's the same for the people you're trying to get to become your client and customer.

Most will never do business with you if you advertise?

Why?

People don't trust advertisers.

We've come to learn (usually at a loss to ourselves) that we are injured not by what is said in an advertisement but by what is not said.

Every advertiser puts their best face forward and withholds any information that might stop you from buying.

They accentuate the good and hide the bad. This means we are often disappointed when we buy from advertisements.

Everyone feels this way. If not consciously than at least subconsciously.

93% of the people who see your ad will never buy from you. They don't believe that your ad, any ad, tells the whole truth.

So what do you do about this?

Look at your income and ask yourself, is it worth the effort and cost you're spending to get at best only 5 to 7% of your business from advertising?

Probably not.

The high cost of advertising makes it nearly impossible to break even when you're trying to sell anything.

Add the high cost to the low number of people who will believe your ad and you quickly see that advertising is a bad idea.

So instead of tossing money to ads that don't pay, seek referrals.

How do you nurture referrals and recommendations?

Simple. You ask.

Ask your existing clients and customers for referrals. Ask at point of purchase. Follow up by mail. Call your existing clients and ask for referrals. If you have an online site you can use a 'tell a friend" link on your site and in all of your outgoing email messages.

You can even ask your past clients and customers for referrals. By putting a formal referral system in place you will continue to watch your business grow without worrying about watching your company stagnate from wasting money on advertising that does not work.

Andre Bell is an author, copywriter, and principle consultant with Andre bell Consulting Group. A free copy of his checklist of "69 Ways to Market Your Business Without Advertising" is available at no charge with his free marketing course at http://www.AndreBell.com