Today on TIM411, Tim answers the question, “Can a referral-based business reach $1 million in revenue?” He also answers the second part of the question, “Is it sustainable?”
Referral-only businesses need solid systems for getting referrals. Your referral network will be your only source of income so you must increase the reach of that network.
That’s why Tim recommends that you don’t rely solely on referrals. You should have multiple sources of customers so that you can control your growth, predict future revenue and expenses. But the biggest reason to have multiple ways of getting clients is that any source of customers can dry up and fail you.
If you have additional sources of customers outside referrals, you’ll rapidly increase the reach of your referral network.
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