Over the past year, my wife and I have gotten some side jobs completely on referrals.
There are many ways to make extra money. Broadly, there are two kinds of ways: active and passive. Active income involves trading time for money, whether it's going to a second job or performing a service. Passive income is residual income that comes with much less effort, like interest income, royalties, affiliate income, and so forth.
Active income is typically a faster way to get money into your pocket. Do a job, and get paid (once). Passive income takes longer, and there is typically a lot of up-front work or investment before the money really starts to flow.
Word-of-mouth advertising drives my wife's sewing income
For people who provide services, though, there can be a residual, almost passive component to it: word-of-mouth advertising.
My wife does many things well. Over the past few years, though, she's developed a skill for sewing, alterations, and tailoring.
We put together a website for her — she's even gotten a request through it recently! — but most of the business she's gotten this year has been through referrals.
The formula is pretty simple: Do good work at a reasonable price, and people will recommend you to others.
And recommend they did: Prom season and wedding season were very busy times this past year. Plus she has some repeat customers who bring her work again and again.
Recommendations are powerful. I'm likely to weigh a recommendation from a friend pretty heavily, and many others are as well.
Word-of-mouth advertising examples
Here are several examples of different ways to accomplish word-of-mouth advertising.
People talking you up
This is how my wife has gotten the majority of her new business this past year. Needing something altered for a wedding comes up in conversation, and one of her friends mentions that she knows someone who can help her out.
This is where doing great work comes in. Satisfied clients are more likely to recommend.
A request on a business card
On the back of my wife's business cards, we say “Referrals appreciated!”
That's a low-key, introvert-friendly way of requesting referrals!
So is giving out another business card after delivering a job.
A coupon for you and one for your friend
A bit like an ethical bribe, but it's effective.
One of my previous hair stylists gave me a $5 off coupon, and another $5 coupon to give to a friend. I used my coupon, gave away the other one, and told the person I gave it to how great a job she did with my hair.
Win for me, win for my friend, and win for my hair stylist.
Comments on social media
Recommending in person is usually one-on-one or one to a few. Talking up on social media can be one to many, depending on how big your friend circle is.
People will sometimes poll their “Facebook Hive Mind” to get recommendations. (Facebook even has a way to do this that makes it obvious!) Word of mouth can show up in the comment section of these posts, or anywhere else really!
What's great about word of mouth?
For the most part, word-of-mouth advertising is free.
You may have to ask people to recommend you, but often you don't! New clients and customers kind of show up with their wallets and purses open because they heard about you.
A simple “call to action” might be all it takes to get more referrals. “Like us on Facebook” or “Tell a friend” or “Vote for us here” are simple and clear.
A family friend spent four figures on Facebook ads and got one or two visits out of it … from her significant other. Ouch!
It would have been far cheaper to plant the seed in their customers' minds to talk their products up (which were awesome by the way) and wait for the referrals to bloom.
What can you do with your business to encourage people to bring you referrals?
