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Why Direct Referral Marketing Is Your Best Strategy in 2019

In today’s episode of A Drink with The Hurricane, Steve discusses why direct referral marketing is your best strategy for 2019!


This is something that I talk about all the time. It is the very essence of the Hurricane program. What I want to talk about specifically, is all of the ways that we can generate business.


If you take a look at the last five, six years of data from the Home Care Pulse Report, you will see that they break it down into two different categories. There’s direct to consumer marketing, and then there’s referral marketing categories. If you look at those reports and look at the programs that are within there and the data that’s collected, the direct to consumer marketing gives a very small return on investment.


Now, what am I talking about, direct to consumer? Paper click ads on Google. Return investment is 10% or less. Www.care.com, a place for Mom, referral, internet-based networks. The return on investment is less than 10%. The billboard advertising, very small return on investment. Radio ads, super expensive, very little return on investment. Television ads, super expensive, very little return on investment. Then you have your website. If you’re part of a franchise, your website is more effective than if you’re not, because there’s a hundred, 200, 500, a thousand business entities with your name on it, but even still, the return on investment that home care pulse shows, is about 15% of your total annual revenue.


So, if I do a million dollars, 15% is only 150 thousand dollars. So while granted I’m paying into with my royalty, or if I have my own independent company and I’m not part of a franchise, then I have my SEO that I’m paying into and that’s gonna give me close to 15%. 15% of a million dollars, is 150 thousand dollars. That’s a very small percentage of our total annual revenue. But when you look at the direct referral marketing side of it, everything about our industry is all about referrals. It makes sense.


If I’m sick, I go to the Doctor. Aw Doctor, my stomach. I’m not feeling so good. Hm, I’ll give you something today, but I think you need to see a gastroenterologist to get checked out. Maybe have an endoscopy or a colonoscopy so we can find out what the real root problem is. So, the Doctor just made several recommendations or referrals in that example that I gave you, that we all can relate to.


Now when you look at the referral side of it from Home Care Pulse, they look at skilled nursing facilities, and they surveyed the leaders of our industry. Who were the leaders of our industry? These are people who are on average, are doing about five million dollars in total annual revenue. Which is the upper 10%. Most home care businesses are around a million dollars a year. The average leader is doing five times what the average home care business owner is doing.


Their business is coming from referral sources. The average leader, who said skilled nursing facilities, nursing homes, L-techs, rehabilitation centers, were their number one referral source generated 36% of their entire annual revenue last year, from that one referral source type. Now put this in perspective. If the average leader is doing five million dollars, 36% is almost 40%. That’s close to two million dollars in revenue, that came from one referral source type.


They talk about assisted living communities in there, and the return on investment is 19%. So a leader who’s doing five million dollars, 19% that’s almost a million dollars in revenue from one referral source type. They talk about hospice in there, saying 15%, which again 15% isn’t a great percentage, but still, 15% of five million dollars, is like 700, 800 thousand dollars in total annual revenue from one referral source type.


And the leaders who get into hospitals, their return on investment, although only 5% of the leaders surveyed said, a hospital was their number one referral source, close to 40% of their annual revenue, came from this one referral source type. That’s over two million dollars in revenue on a five million dollar business. Even if your business is only doing one million dollars, 40%, that’s 400 thousand dollars of your million dollars from your referral source type.


So clearly, when you look at consumer marketing, versus referral marketing, referral marketing is gonna win every single time. You know why? Because referral marketing, you get three or four referrals, you’re gonna convert two, maybe three out of those four. If you get three, you’re gonna convert two out of those three into an actual client. Whereas we all know the internet leads, you get 10 and maybe you get one client from it. The conversion ratio alone, speaks for itself. That’s why it’s all about direct referral marketing.


That’s why an event like this sells out because everybody’s trying to get direct, professional referrals to grow their business. So, if you’re not direct referral marketing, you are missing out on literally millions of dollars in revenue, that you could have. If you don’t know how to do it, come to a Hurricane Boot Camp where I’ll give you everything you need to BLOW AWAY THE COMPETITION!


Hurricane’s Millionaires Boot Camp: Black Hawk Colorado



Steve "The Hurricane"

Steve “The Hurricane”

President and Owner of Hurricane Marketing Enterprises

Steve Weiss has been in Marketing and Sales his entire life. At age 14, he owned “Neighborhood Kids Landscaping Services” where he cared for lawns around his school schedule. While in College, he sold Cutco Knives, and his honors received then were “Top Sales Rep” in 2000, he helped the Middlesex office have its first Million Dollar year in 2001, and ran the number 1 branch in productivity in the company (out of 400 locations) in 2002.

In 2005 Steve joined Care Choice (A Private Pay Home Care Company) and grew it from 16 active clients to maintaining a census of over 100, growing annual revenues from $750,000 to nearly $5 Million in just 4 short years. Eventually, he became Vice President and partner before selling the company to Senior Bridge. During his time there, Steve was recognized 14 for 14 months straight as a Top Sales Person in Inquiries, Starts, and New Revenue.

In June of 2012, Steve founded and became the President of Hurricane Marketing Enterprises where he currently is a Motivational Speaker, Business Seminar Leader, and Consultant/Coach to clients across the country.

Steve is happily married to his beloved wife Susan, and is the proud father of Steven, Sydney and Sienna who are the light of his life. Lastly, Steve went to school to be a Minister and aspires to accomplish that mission as a second career by age 45.

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