Erik talks to a lot of Managing Partners of law firms and 90-95% of their leads come from referrals. In this episode, Erik shares the different lead sources that you can rely on.
Erik J. Olson (00:01):
Why you need more than just referrals. What is happening? I am Erik J. Olson, your host of this episode of the Journey to $100 Million. I talk with an awful lot of managing partners at a law firms, like on a daily basis. And one of the things that I hear from managing partners a lot is that like 90 to 95% of their leads come from referrals now, like referrals are awesome. I always tell them, oh, that’s great. I love referrals. Like when I get a referral from someone like there’s a very high likelihood that that person is going to become a client of ours because there’s a high level of trust there. So everybody loves referrals. And by the way, if you’re a lawyer, almost all lawyers are only relying on referrals. They are relying on their good reputation, their good work and people talking positively about them to produce referrals, to get leads.
Erik J. Olson (01:00):
Now look, if you are getting only, or not only if you are generating 95% of your leads from referrals, guess what that means. That means that only 5% of your leads are coming from other sources. Now think about how many sources there are out there in the world. Now, I, I was speaking with a sales trainer very recently, just last week where he says at a minimum, any firm that wants to stay in business for the long term needs five different lead sources, preferably seven. Right? So what are those kinds of lead sources? So we’re talking about things like referrals. We’re talking about in person introductions, we’re talking about networking. We’re talking about phone calls. We’re talking about websites. We’re talking about any online activity. There’s newspapers, billboards, magazines, you, it goes on and on and on, right. A direct mail.
Erik J. Olson (02:02):
But if you only rely on one lead source, if 95% of your leads come from one source referrals, you are incredibly vulnerable. And frankly like you need to be doing more. If you only have one lead source, all of your eggs are in one basket and it’s a basket by the way, that is incredibly passive. Most people, most of the time do absolutely nothing to actually generate referrals. Do you have a written referral plan or strategy? If you don’t have a written referral plan and strategy, you don’t have a plan, right? You may think you have a process. Oh, I gotta remember to ask that client after the third meeting for refer, you’ll probably forget half the time. You’ll probably forget three quarters of the time. You don’t have a process, right? So the most important referral source you have as a matter
Erik J. Olson (02:58):
Of fact, only one for all intensive and purposes. If you’re generating 80, 90, 90 5% of your traffic, your leads, your clients from referrals, that’s your only source. And if that source you don’t even have a plan for it, you you’re just, you’re just hoping. You’re just hoping for the best. So like a much better strategic thing for you to do is proactively create other lead sources. So this is where, like, someone like me and Array Digital comes in digital marketing is another way another avenue of getting clients. It’s another lead source. So keep getting the same quantity or more preferably of referrals. That’s great. But why would you ever not want additional leads on top of that? Right. So if 95% is, let’s say that of a hundred, a hundred of leads, 95% of the referrals. That’s awesome. Keep getting those 95 referrals in the same timeframe, but stacking on another hundred from digital marketing.
Erik J. Olson (04:06):
Like, doesn’t that make sense? When do you want more ways of getting new clients instead of just being totally dependent on one? When, where you don’t even really honestly have a strategy. So that’s our take here is that you need lots of different lead sources. As a matter of fact, this wasn’t even my idea. Like I said, I got it from a sales trainer. You need multiple lead sources that, Hey, that’s why I’m doing this podcast. This is the lead source for me. You’re listening to me right now. You’re listening to Erik J. Olson at Array Digital. That’s gonna be impregnated in your mind. You’re gonna remember Erik. Oh yeah. There’s Erik, the digital marketer. And then you’ll see me on Instagram. You’ll see me on Twitter. You’ll see me on LinkedIn. Oh, there’s Erik again. God, I see him all the time. I hear him all the time. Those are lead sources, right? Yes. I love referrals. I want as many as I can, but I know that I need to do more than just referrals. And so do you.