Paid acquisition is linear: every new client costs the same. Referral networks compound: every happy client can become a source of the next one. Model the difference.
Same paid marketing budget. With a managed referral network on top, 50 clients become 83 — 33 of them acquired at no paid cost.
Track the network behind this projection.
Both scenarios acquire the same number of clients per year through paid channels, so the paid budget is identical. The network scenario adds referrals on top: each year, every active client generates referrals at your specified rate, and referred leads convert at your close rate. Referred clients generate referrals at 1.3× the base rate, the conservative end of Gershon and Jiang’s finding (Journal of Marketing Research, 2024) that referred customers make 31–57% more referrals than non-referred customers. “Paid spend avoided” is the number of referred clients times your paid cost per client. Law-firm cost defaults reflect published legal marketing benchmarks (PPC cost per lead of $150–$400, adjusted for typical lead-to-client conversion). The model does not account for churn or market saturation, so treat it as an illustration of the compounding mechanism, not a forecast.
This tool is for general informational purposes only and does not constitute financial, legal, or tax advice. Results are estimates based on the inputs you provide and published research. Consult a qualified professional before making business decisions.