Mark Osborne explains why relying too heavily on referrals can hurt your business at exit. Many owners cut paid advertising once referrals pick up, but buyers want to see diversified customer sources. A business dependent on referrals alone looks riskier to acquire.
Yeah, it's interesting. And I share my story about how I sold advertising before as a business broker. And this was the first time I saw this was actually not when I was a business broker. It was when I was in advertising and we would talk to law firms about where their business comes from. Yeah. And some of them were 100% relying on the campaigns they were buying from us, and others did almost no campaign, paid campaign, because they got all of their business from referrals. Yeah. And now that I'm on this side of it and I'm a business owner, I advise other business owners. I see why people stop spending money on advertising once they start to get referrals, because it's, it's easier to, to deal with, with that type of stuff.
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