Featuring insights from Sara Nay, CEO of Duct Tape Marketing
It starts with a sick feeling.
You built your business on referrals. Good work led to good word of mouth and for years, that was enough. Then you look up and realise it has been months since a new one came in. When referrals dry up for a small business, there is often nothing else in place. No ads. No content strategy. No real pipeline. Just the hope the phone will ring.
Sara Nay, CEO of Duct Tape Marketing, knows this scenario well. She sees it constantly across the small businesses she works with. And she has a direct message for anyone in that position: the answer is not to start running ads next week.
The answer is to build a strategy first.
Sara Nay’s segment begins at 13:04. Full episode on Paul Green’s MSP Marketing Edge.
Why referrals dry up and what most small businesses do wrong next
Growing through referrals is actually a good sign. It means clients like you, trust your work, and talk about you. Sara is the first to say so.
“It’s great that you’ve been able to grow based on referrals,” she says. “That shows that you provide a good service and clients are happy. That’s checkbox one.”
But referrals are not a marketing strategy. They are a single, uncontrollable channel. When they slow down, businesses with nothing else in place have nothing to fall back on.
The instinct when referrals dry up is to grab the nearest tactic. Run some paid ads. Start posting on LinkedIn. Hire someone to do SEO. Sara says that instinct is understandable but almost always wrong.
“Instead of just going okay, we’re now going to do paid ads,” she explains, “it’s taking a step back and saying: who are our clients? Where do they hang out online? How do they make buying decisions? What keeps them up at night?”
Channel selection follows strategy. It does not precede it.
The two things you need before you pick any channel
Sara is clear about what has to come before any channel decision. Two things.
First, a real picture of your ideal client. Not just their job title. Where do they spend time online? How do they make buying decisions? What keeps them up at night? What problems are they trying to solve?
Second, messaging that gives people a reason to care, not just a list of what you sell.
“You really need to understand those two things first before you can decide what channel or how you’re going to approach the channel moving forward,” Sara says.
This is the foundation of what Duct Tape Marketing calls Strategy First. It is a structured 30-day process that produces a complete marketing strategy before any tactics start. Duct Tape Marketing has built their client work on it for over 30 years, and Sara argues it is more important now than ever. The current positioning at DTM says it plainly: strategy before technology.
Technology, AI tools, platforms, none of them become valuable until a clear strategic direction is in place. The tools should follow the strategy, not the other way around.
Map the customer journey before you map the tactics
Once you know who you are serving and what to say to them, the next step is understanding how people move through a relationship with your business.
Duct Tape Marketing uses the Marketing Hourglass. It is a customer journey model John Jantsch first laid out in his book Duct Tape Marketing, and Sara still uses it with every client. The seven stages are Know, Like, Trust, Try, Buy, Repeat, and Refer.
Think of it as a complete loop rather than a one-way funnel. The goal is not just to get someone in at the top. It is to move them through every stage and bring them back again.
Sara explains why this matters in practice: “You can sit down and analyze what are we doing in each of these stages. Where are gaps? Where are opportunities to improve? And if you can really nail moving someone through each of those stages as they interact with your business, they’re going to become repeat customers and then they’re also going to just naturally refer you.”
A well-mapped customer journey does not just improve retention. It restarts referral flow naturally. When referrals dry up for a small business, this audit is often where the answer lives.
Tactics without tracking are just busy work
Sara sees a pattern constantly. A new client walks in running five or six marketing activities. When she asks what is working, they have no idea. They never set a goal before they started.
“It’s not enough just to create your list of tactics at the end of strategy,” she says. “You need to say, if we’re going to do these things for the next 90 days, what’s the definition of success and how are we going to track that? Because that information is going to help guide if you should keep doing things or if you should shift.”
Set a goal for each tactic before you start, then track it over 90 days. Hitting the goal, keep it. Not hitting it, stop or adjust. That is a system. Running activity without measurement is just spending time.
How to stand out when everything feels like noise
The marketing environment right now is loud. AI-generated cold outreach fills inboxes and LinkedIn messages. New platforms launch weekly. Every vendor promises a lead generation system.
Sara says she barely checks her LinkedIn messages anymore because so much of what arrives is automated pitch after pitch.
“It is harder to get people’s attention and it is harder to stand out,” she says. “But if you approach marketing with a more authentic human feel to it and not just trying to scale with AI, there is opportunity for people to see your authentic selves.”
Her take on AI is precise. Use it, but put a human on both ends. Lead with your own insight, stories, and direction. Let AI help shape and scale that into content. Then edit and refine the output yourself.
“Human on the front end, AI in the middle, human on the back end. That’s where it can be powerful,” she says. “It helps elevate you and your skill set and not replace your creativity.”
Low-budget marketing that actually works
If you have a few hundred dollars a month and no marketing infrastructure, Sara has a clear point of view on where to start.
- Content repurposing. Record short videos on specific topics your audience needs to know about. Use those videos as the source material for social clips, email newsletters, and blog posts. AI makes the repurposing faster, but the original thinking has to come from you.
- Direct personal outreach. Build a list of people in your ideal target market and reach out to them as a human. Call them. Send a personal message. When every inbox is full of automated pitches, a real call or personal message stands out immediately.
- Podcast guesting. Getting onto someone else’s podcast costs nothing but your time. It puts you in front of their audience and builds authority in a format people actually trust.
None of these require a big budget. They require clarity about who you are talking to and the discipline to show up consistently. That clarity, as Sara would say, comes from strategy first.
Frequently asked questions
What should I do first when referrals dry up?
Do not start with a channel. Start with your ideal client profile. Define who they are, where they spend time, how they make decisions, and what message will resonate with them. Only then does channel selection make sense. Sara Nay of Duct Tape Marketing also recommends auditing your customer journey using the Marketing Hourglass to find where existing client relationships are breaking down.
Should I run paid ads when referrals stop?
Not until you have a strategy foundation in place. Paid ads without a clear ideal client profile and resonant messaging will waste budget. Build those first, then decide whether paid ads are the right channel for where your clients actually spend time.
How do I get referrals to come back naturally?
Map your customer journey using the Marketing Hourglass. Look at what you are doing at the Know, Like, Trust, Try, Buy, Repeat, and Refer stages. Gaps in the Repeat and Refer stages often explain why referrals have dried up. Fixing those gaps creates the conditions for referrals to restart without actively asking for them.
What is the Marketing Hourglass?
The Marketing Hourglass is a customer journey model created by John Jantsch of Duct Tape Marketing. It maps seven stages: Know, Like, Trust, Try, Buy, Repeat, and Refer. Unlike a traditional funnel, it continues past the first sale into retention and referral. Duct Tape Marketing uses it as an audit tool to identify gaps and set marketing priorities.
How should small businesses use AI in their marketing?
Sara Nay’s framework: human on the front end, AI in the middle, human on the back end. Bring your own insight, stories, and direction. Let AI help shape and scale that into content. Then edit and refine the output. The goal is to use AI to elevate your thinking, not replace it.
