Is Your Business Leaking Profits?

By: Darcy Juarez on: May 27th, 2014 3 Comments

Drrrrrip…Drrrrrip…Drrrrrip… Drip, drip, drip! My friend first noticed her leak one day during a heavy rain storm.

It appeared in the first floor ceiling of her two-story home.

The next day she called a roofing company who sure enough found some damage to her roof.

But after replacing the roof, the leak returned.

Several return visits from the roofing company, an engineer survey, two holes cut in her ceiling and wall, several plumber visits and a year later, she finally was able to plug her pesky leak once and for all.

The thing is… the leak and the problem existed for many years before it became apparent.

Because while the roof was the culprit for some of the problem, the persistent drip was caused by a design flaw in the original plumbing in her upstairs bathroom.

Businesses have leaks too. In fact, chances are good that you are losing customers (and therefore money) every single day without even realizing it.

Even worse, according to a study conducted by the Goethe University of Frankfurt and the University of Pennsylvania, the type of customers you are losing are “more profitable and loyal than normal customers.” The study found that these customers have “a higher contribution margin, a higher retention rate and were more valuable in both the short and long run.”

Now I’m willing to bet that if I asked you if you wanted more customers, you’d tell me “yes.” Especially when I told you that you could gain better customers who would spend more and be more loyal to you.

So what is this pesky leak? Well there are actually several leaks businesses have, but one of the top leaks that I’m referring to here is the lost opportunity from referrals.

Referrals give you better clients and better margins because they often cost much less to acquire than pursuing a cold lead. Plus because they were referred by someone they trust, there is much less sales resistance. This also gives you the ability to charge premium rates. Plus, because your customers are referring people to your business, you won’t have to rely so heavily on cold new traffic.

So if you don’t have a consistent flow of referrals coming into your business then you have a leak that is costing you thousands of dollars. Put systems in place now to make it easy for your clients, customers or patients to refer you and plug up that expensive leak once and for all.

P.S.– Get “The 10 Rules to Transforming Your Small Business into an Infinitely More Powerful Direct Response Marketing Business” for FREE. Click here to claim your customer-getting, sales-boosting tactics.


Darcy Juarez has created marketing systems in the direct response and information marketing world that have gained national attention. As the Director of Marketing for GKIC , Darcy has taught thousands of business owners her step-by-step strategies for creating their own success and obtaining more time and more profits. For more money-making marketing tips, tactics and strategies, go to

3 Responses

  1. David Hunter says:

    Is there any “live” front row seating available to this filming? :-)

  2. Mark says:

    Great analogy Darcy!

    And without a doubt, referrals, but especially referrals coming from your
    top twenty percent customer/client base, are practically slam dunk sales!

    Great tips! thanks for sharing.

  3. […] you to lose customers (and money) without you even realizing it. (If you missed it, you can read Is Your Business Leaking Profits? […]

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