Ep #13: The Golden Ratio

When you’re driving new business to your Fractional CMO practice it’s important to not rely too heavily on referrals. In this episode of Fractional CMO Show, Casey is filling everyone in on why it’s more important to focus on filling up your pipeline than looking for more referrals and attain the Golden Ratio.

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Episode highlights:


The Golden Ratio is the idea that referrals are coming in more frequently than customers churn.

You can not build your Fractional CMO practice solely on referrals. If you try to rely entirely on referrals, you’re never in control of your pipeline and without a full pipeline, you won’t be able to predict your income for months at a time.

Referrals come from word of mouth through people who trust you. When you talk to a prospect who has been referred to you, they are likely prequalified and more likely to say yes to you based on some degree of trust built on who referred them.

It’s relatively easy to get to the Golden Ratio as a Fractional CMO. If you are serving 3-6 clients for 3-24 months you only really need to get 1 referral per quarter to maintain your pipeline.

Quote of the show:


You want to get to that position where your pipeline’s full, but what’s better than a full pipeline is the referrals on top of it. It’s kind of like the sprinkles. It’s the magic”

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