1:46
Why run ads if we have referrals?
Referrals are warm but unpredictable. Paid ads add consistency.
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Video transcript
If you currently rely on referrals, then why should you start paid advertising? Referrals are great. You know they are the warmest leads. They've come from a trusted source. They're going to convert a higher rate than probably anything, because they've got so much trust and belief that you can actually fulfill on what they're looking to do.
But there are some problems, the main one being how sporadic they are. You have no control over, other than ticking the right boxes in terms of asking for referrals on when these referrals actually come through to you. You may get eight referrals on one month that convert, you may get to the next, and all of a sudden you're left with this very choppy demand line that you've somehow got to make hiring decisions around.
You've got to grow your business around, maybe invest in new premises around. There is very little consistency. Paid advertising is the opposite. The leads are slightly colder because obviously you're you're going out to the market to get that interest rather than them coming to you. But it's very consistent.
So if we load up a certain budget into matter with our strategies, with everything we put in place to achieve consistent results and gain momentum over time rather than performance fatiguing. For example, shooting every three months, then we can be very confident about what cost believes you're actually going to achieve from your campaigns.
Therefore, we can work downstream of that. How many inquiries, how many quotes, how many surveys, how many sales? And you can start to make real important decisions based on that data and reliability. And of course, you keep the referrals, the referrals are going to come on top and and you're actually going to get referrals off of the sales that you close from the Facebook ads, but you get that added consistency and scalability.
The other piece is that if you have a down month on the referral side of things, you can very easily increase your advertising spend to make up the shortfall. It is scalable upwards and downwards, so it's quite a flexible channel for you to basically tweak based on what the business needs at any one time.
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