The biggest challenge any business owner faces is attracting new customers in the most efficient and cost-effective manner possible. Advertising and marketing, and yes there is a difference, can be two of the most frustrating, time consuming and expensive functions for any business.

Despite the importance, a large number of business people are not well schooled in the art of marketing and end up wasting large sums of money due to the perception that the more you spend on advertising the better the response will be.

Although big dollar marketing campaigns can certainly produce big results, ironically some of the most effective marketing strategies are absolutely free. Every businessperson knows the incredible value that comes with a personal referral from an existing customer. There is simply no better lead. And almost all successful companies have a referral program in place.

But in reality all advertising, whether radio, television, print or even internet is in fact referring. The advertisement is referring the viewer or listener to your business. The problem is people know it's you doing the referring so the message loses impact. This loss of impact comes from the impersonal connection most advertising suffers with. Consumers want to feel connected to the businesses and the people they trade with. Traditional ads simply don't make the connection.

Sure commercials can tell your story, but traditional advertising can only deliver a one sided, impersonal message. On the other hand when people learn of your firm by way of someone they know, they experience an immediate bond with you. This is why personal endorsements from radio and television personalities are so much more effective than recorded spots.