How to Use Word of Mouth to Scale Your Business with Dave Plunkett
Word of mouth is one of the best ways to grow a business, but many people think it’s just luck. In a recent BD Matters masterclass, Dave Plunkett, Founder of Collaboration Junkie, shared how to turn referrals and partnerships into a steady stream of high-quality leads. Here’s what we learned.
Why Word of Mouth is so powerful
People prefer doing business with those they know, like, and trust. That’s why referrals lead to faster sales, less haggling, and fewer ghosted conversations. But the mistake many businesses make is thinking referrals just happen on their own.
Dave explained that relying on an "organic" referral strategy (aka doing nothing and hoping for the best) isn’t really a strategy at all. Instead, you need a plan to make word of mouth work for you.
How to make referrals happen (instead of just hoping)
Referrals don’t have to be just about the founder’s personal network. You can make them part of your business strategy by:
Educating your network so they know exactly what kind of clients you’re looking for.
Asking for referrals at the right time—when people are most excited about working with you.
Building strong partnerships so referrals become a regular thing, not a one-off.
Asking for referrals without feeling awkward
Many people feel weird about asking for referrals—like it’s too pushy. But Dave pointed out that people love making introductions when it’s easy and when it helps both parties. The trick is to:
Make it about helping, not selling.
Ask at the right time—after a wow moment when a client is happiest.
Build it into normal conversations so it feels natural.
Spotting the right moments to ask
The best time to ask for a referral is when your client is feeling great about your work. These ‘wow moments’ vary depending on your business. Maybe it’s:
Right after a successful project wraps up.
When a client gets great feedback from their team or customers.
When they hit a milestone because of your work.
The key to building the right company culture is to help your customer-facing team identify opportunities, which is much easier when you frame the interaction as assistance rather than selling. Since account managers seldom enjoy selling, this resolves that issue.
Map out your customer journey and figure out when clients are most likely to be thrilled. Those are your golden opportunities to ask.
Be specific about what you want
One of the biggest mistakes people make is being too vague when asking for referrals. Instead of saying, "If you know anyone who might need our services, let me know," try this approach:
Describe the exact type of client you want.
Highlight specific problems or challenges those clients face.
Ask for referrals at the moment when those challenges come up.
For example, instead of saying, "We do branding," you could say: "If you hear someone say their website looks outdated and they want to attract bigger clients, that’s the perfect time to introduce us."
Creating a referral culture
Referrals shouldn’t just come from clients. Your whole network—including employees, partners, and suppliers—can help. Some ideas:
Mention referrals early on—for example, during onboarding, so clients expect it later.
Train your team to spot referral opportunities.
Use client feedback and reviews as a natural way to ask for referrals.
Rewarding referrals (without making it weird)
Not everyone needs a cash incentive to refer you. In fact, offering money can sometimes backfire by making referrals feel transactional. Instead, Dave suggests using thoughtful, personal rewards that create an unexpected smile—like a small gift that aligns with the referrer’s interests.
For strategic partnerships, financial incentives or commission-based rewards can work, but make sure they feel right for both parties.
Partnerships: The secret to scaling referrals
While client referrals are great, partnerships can take things to the next level. Dave introduced the idea of "nearbound" marketing—working with trusted partners who already have access to your ideal clients.
Here’s how to make it work:
Find partners who serve the same audience but in different ways.
Create a clear value proposition for them. Why should they introduce you? What’s in it for them? It's not just about the financial reward; it's about presenting their work effectively to the client and ensuring the best possible outcome.
Make referrals effortless. Give them an easy way to introduce you—maybe a simple offer or resource they can share.
Final thoughts
Referrals aren’t just luck—they’re something you can build into your business. The key is to:
Identify the best moments to ask.
Be clear about what kind of referrals you want.
Make it easy and natural for people to introduce you.
Reward thoughtfully and nurture long-term partnerships.
If you’re ready to grow through word of mouth, start by spotting your wow moments and getting intentional about your referral requests. And most importantly—ditch the awkwardness and just ask!
You can access Dave’s masterclass online and all our other amazing on-demand masterclasses when you sign up as a Youngling member via here.