Business Idea

Start A Referral Service Business

About

Starting a referral service business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell referral service , or selling referral service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$2.8B
starting costs
$15.8K
gross margin
90%
time to build
7 months

About

Starting a referral service business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell referral service , or selling referral service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$2.8B
starting costs
$15.8K

 

gross margin
90%
time to build
7 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $150 $250
Website Costs $223 $7,015
Business Formation Fees $600 $4,700
Software Expenses $162 $2,894
Advertising & Marketing Costs $0 $1,400
Total Startup Costs $1,135 $23,259

Successful Businesses

Business URL Rank
American Business Bank americanbb.bank #482,160
Community Lawyer community.lawyer #698,817
Massachusetts Bar Association :: Lawyer Referral Service masslawhelp.com #1,537,674
KCBA > Home Page kcba.org #1,540,433
Southwest Veterinary Surgical Service swvetsurgery.com #3,185,374
Military Referrals and Relocation Agents and Realtors militaryreferrals.com #3,906,826
OCBA Lawyer Referral & Information Service lrisoc.org #4,593,785
Los Angeles Networking Group worthwhilereferralsources.com #4,867,898
BANANAS bananasbunch.org #5,666,199
Middle Tennessee, Kentucky, S. Indiana bnitennessee.com #5,850,840
Home mkebar.org #6,178,935

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a referral service business costs significantly less money than most businesses, ranging anywhere from 2,515 to 23,259.
Rewarding work Starting a referral service business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
No overhead costs To get your referral service business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
Cons Description
Crowded Space Competition is high when it comes to your referral service business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Longer Sales Process A referral service business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Work can be inconsistent As a referral service business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a referral service business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a referral service business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a referral service business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.