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In the past, businesses relied on referrals more than they relied on advertising. A certain local establishment can be a town landmark yet does not employ any kind of marketing campaign because it has excellent word-of-mouth. Presently, there are so many marketing strategies aside from referrals which any small business can employ. However, the power of referrals is still going strong, making it a must for local businesses.

Unless your customer is that happy with your services, you cannot expect them to refer you to their friends and family without you motivating them first. This is why most local businesses have a referral program wherein they reward customers for their referrals. The idea of giving out incentives will usually mean that a business has to spend money in order to make money. But if this strategy is carried out wisely, business owners need not worry about throwing cash into the drain.