I am now in my 14th year of running a small business. 6 years ago I did a major radio advertising package using 60 ads per month for 12 months. Without a doubt this made my business become a more familiar name that people knew. From there it was WOM but the initial radio package increased my business enough to afford two more staff to cope with the extra business. From there I have done spot advertising for specific topics that are appearing in the newspaper like Wedding Guides, Senior Citizens, Big Day Out concerts etc. I still strongly believe in WOM but a good business is also reliant on good staff so that the WOM is positive not negative. &I had a professional company  completely overhaul my web site to a brighter, easier to use system. This has not helped the web sales at all so if anyone has some ideas to get noticed more, then I would love to hear from you.

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Hi
I agree with ozbeanz re: networking.

I have found that networking is also a great tool for free advertising, however I am struggling to get other business' to meet and network. I have approached established business' whom seem to be happy with their lot and not too keen on networking.
Sole traders like myself have been happy to network, which has been successful, however fewer in the area to approach.
Any ideas welcome

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I think the "best" advertising mix to use depends on:
- What you're trying to achieve (e.g. brand recognition or maximum conversion, selling more of an existing product / service or selling a new line)
- What timeframe you're trying to achieve it in (weeks, months, half-years, years)
- What the market demographics look like (e.g. blue collar or white collar, young or old)
- Your cashflow situation ("classic" advertising costs money!)

As an example, one of our clients operates in the tours & charters industry, and we see about 20% of business come through the Yellow Pages for that business. That said, it comes through the Yellow Pages online, not the hard copy. From the responses we have had, this happens simply because there is so much demand in that industry right now, there are enough consumers to try companies without WOM referral.

Personally I'm in the same boat as tyzie6868, possibly because I'm in the same industry (IT): I have only used word of mouth advertising in this business. I have never used other forms of advertising, as I've haven't yet wanted to .

If you're starting from scratch though, clients have to come from somewhere in order to get the WOM advertising to begin with. If you're in a market where your demographic is not net-savvy, it will probably be best to advertise off line (for example). Neat idea from countryboy too, I've often wondered how successful vehicle signage is for advertising.

Suffice to say, I think there's more than one variable, and no "one size fits all" for advertising in business. Most advertising books usually say the same thing.

Cheers,

James
Proprietor, Sir Technology
http://www.sirtech.com.au

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Hi,

I've had my current business for only 8 months now - my sole source of advertising is my website. About 80% of my business comes from the website and 20% WOM.

WOM is, of vourse, the best new business - but the thing for a lot of SMBs when they start is they don't have enough customers for WOM to generate enough business.

My saving grace has been the intetnet. When you create your website, focus on a text based website - avoid all the flashy and "arty" websites - they look great, but google can't read pictures (even google images only "reads" the test attached to images). Focus on getting a good page rank and get someone who knows about Search Engine Optimisation to design your site for you.

Cheers
Mark
www.palletkings.com.au

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Having run my own business for the last few years, I have grown my client base from 1 client right up to 40 companies through word of mouth. Being in the IT sector (with a focus upon small businesses) word of mouth is very powerful as there are many "shonky" IT operators out there who are ripping into these small businesses. I haven't spent 1 cent on "advertising" through print / tv / radio - so I can say... WOM works!!!

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I agree the yellow pages seems redundant - I wonder how many actually look there first.

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Intro - We are a full-service "Direct Marketing and Promotions" consulting firm.

Our Thought - We still believe the best form of winning New Business is through "Direct Marketing and Promotion". By speak to the public directly has given us the best form face to face contact, a feedback and a WIN-WIN for everyone!

Cameron - Co-Founder and CEO
AustralianTel Marketing and Promotion
www.AustralianTel.TV

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Hi, I have been operating a service business now for 11&1/2 years, so we must be doing something right. I have tried advertising in yellow pages, newspapers and even on movie screen, all to no or very little avail.
For me, networking and WOM have been the most effective. I use a small network of people engaged in similar work to myself, and we help each other by providing services wher one of us cannot cover the job. My service is in the training area, so people can be very emotive about our results, and I have found that customer satisfaction leads to the best advertising. I have got most of my clients from referals from satisfied clients, and cannot see this ending in the near future.

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countryboy raises a good point, hello to all, we're new on this Hub. My husband and I are just about to commence our own small business in signage and vehicle wrapping. It's a little daunting to try and generate customers from scratch and we're working hard on word of mouth together with a little affordable advertising such as wrapping our own vehicles, not only do we advertise our business we also are able to display the quality of the work. Persistence (and nagging) seems to be working a little as well. Hopefully we'll get through the door and on our way.

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I have been operating for 1 & 1/2 years and until recently relied mainly on WOM and local street traffic for new business clientele. Advertising did very little if nothing but mainly because I concentrated on branding. I have seen learnt that branding and small business don't always go together. Small business cannot afford branding. Hence, I am now concentrating on flyers, e-mails and SMS while still building on the WOM and keeping every client who walks in the door with introductory packages. Marketing/selling happens not in single doses at a time but with a series of strategies working simultaneously. This is proving successful for my business growth.

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My business is mobile so my contribution is from another angle. My two biggest forms of advertising are "referrals" and also direct marketing via my signage on my trailer (bright red with white lettering). How many of you drive to your clients in "un marked" cars/ vans? This "subtle" form of advertising is taken with you every where you drive. Including going to the supermarket/school to pick up the kids/video shop/friends houses/concerts etc etc. My next step is to cover my work vehicle in the same signage (my ute is the same colour as my trailer). I get comments from friends and clients on how many times they have seen me on the road and saying "wow you must be busy, business must be going well". Conversely getting a vinyl sign with a mobile phone number and a business name stuck on a back window doesn't exactly "cut the mustard". Make sure the sign includes your logo, a catch cry (mine is "We come to you") and is proportional to your vehicle- but it stands out! My phone number is on 4 sides of my trailer and includes my logo that can be seen from a long distance away.

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Another form of 'Word of Mouth' marketing is Networking. I encourage anyone in Small Business to join a dedicated Networking group specifically for the purpose of passing referrals to each other. I started my business 2 years ago with one client and grew it to 80 in just on 2 years predominantly by Networking. The best Networking group by far is BNI. Only one person per category in each Chapter so you don't have competition for your services. It's quite a committment but every week you meet with like minded small business people and pass business to each other in a friendly but structured forum. BNI helps build the 'Trust' factor with fellow small business people who become your 'Sales Team'. It's so mush more cost effective to have 25 other people out there looking for business for you than the expensive media ads.

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Have had my IT/ISP business now for 6 years. WOM is the best way of getting new clients. Tried a few methods, salesperson using cold calling, telemarketing, fax flyers, web site. All give some results but each needs to be evaluated against their costs. At the end of the day, for me anyway, WOM seems to be the most cost of effective way of advertising. I can see the day however when a certain size is reached and employing trained salespeople will become the preferred method.

After working for a large corporate for 20 years an various roles, I much prefer my own business even though the amount of money I'm currently making is lower than what I was making as a 'suit'.

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Word of mouth is defintely the most effective. I'm a business coach/consultant and I tell all my clients that they should always use this approach.
"Mr Client. Are you 100% happy with the work I'm doing for you?"
answer should be "yes" (of course!)
As you know, I'm also building my business. I wonder if there is someone you know that I might be able to help in the same way I'm helping you.
Thank you. When I call them, I'll tell them that you think I can help them in the same way I'm helping you.

Also, ask your clients for testimonials to put on your website and use in advertising etc.

All this costs absolutely nothing but is the most credible way of getting new clients/customers.]
Ann Shephard - New Direction Consulting (02) 4645 0000

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Is there anyone who relies solely on WOM marketing? Would be interesting to discover what sorts of contingeny plans are out there in the event of WOM suddenly ceasing to be as effective for any particular business, or taking a nasty 'turn'. Certainly, when it is positive, it's great. But how about when WOM is not so positive? Remember: a happy customer MAY only tell a couple of people about their experience, if they see a benefit out of doing so. But a disgruntled customer will generally always tell a few people about their negative experiences, even if it is only to 'get it off their chest'. What do you do when this is the case?

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