The company will not reach all the people it wants at the costs it intends to have. Good marketing requires strategy and money—the better the strategy, the less money will be needed. Referrals have several advantages, starting with being free marketing.
When the company starts to appear, it is just a brand for potential customers, nothing more than a name and a logo. Over time, the people reached begin to notice the products but still cannot define the quality of what is being offered. Because of this, they will prefer to make purchases from already known companies, where they have more familiarity and trust.
Trust and emotional bond
Investing in promotions and events is a good strategy; it will make the company more visible to the public. Making partnerships and having other companies recommend the product is excellent, but even more efficient than that is having customers who make that referral. Talking about how much quality the product or service has to a friend generates confidence in the brand.
The trust one has in a friend is transferred to the product, which can even become a connecting bond between the two and have an emotional value. We know that many people buy based on their emotions, so the referral from another client is much more relevant to the potential buyer than a product advertisement made by a salesperson, even if it is faithful. Because the recommendation from someone known carries an emotional load that will be directed to the product.
Obstacles to selling
A good comment can bring in customers, just as a bad comment can drive others away. To see the influence of a comment, just go to sales sites and look at the product reviews. People are more resistant to buying products that have not yet been commented on or give up on a product they wanted just because of a bad comment. So, the lack of a referral is as important an obstacle as opposition.
Reaching the target audience is also a challenge. The client will relate to others with the same profile, so their recommendation could be the best marketing. For this, it might be good to invest in benefits and discounts that make the products more attractive, after all, the client tends to recommend products or services that exceed their expectations.