Referrals generated the largest volume of sales leads for 41% of small businesses in a LinkedIn and Ipsos survey, while 61% said customer or partner referrals produced at least one closed deal in the previous year.
The early 2026 survey covered 300 US decision-makers at companies with two to 50 employees. It gives a snapshot of how smaller firms find customers, alongside their use of social media, email and other marketing channels.
The research preview reports what respondents said about their businesses. It does not measure the number of sales caused by a referral program or establish that referrals will outperform advertising for every company.
From introduction to sale
A referral occurs when a customer, partner or other contact recommends a business to someone who might need its product or service. A lead is a prospective customer who has shown or been given a reason to consider a purchase.
In the survey, 53% of small businesses said the founder or owner primarily handled lead generation. That reliance can work well when an owner’s relationships bring in suitable prospects. It can also limit growth if introductions depend on one person’s time.
LinkedIn reported that deals beginning with warm introductions progressed 36% faster than those arising from cold outreach. The preview does not provide enough detail about the underlying calculation to establish how much faster a particular company’s sales process would become, or whether the introduction itself caused the difference.
Referral quality also matters. A larger number of introductions is not necessarily an advantage if few are a good fit. Businesses can track which introductions lead to proposals, completed sales and repeat purchases, while respecting customers’ privacy and asking permission before making contact.
Customers still look for evidence
Relationships are only part of the process. In the same research, 53% of decision-makers said customer testimonials and case studies were among the most effective ways their organization built trust.
For a prospective buyer, a case study can show what problem a company addressed, what work it performed and what the customer experienced. Specific claims need permission and evidence. A testimonial that cannot be verified gives a buyer less to assess than a named, authorized example with a clear description of the work.
Small businesses also reported using several channels. Social media was used by 69% and email by 65%, according to the survey. A referral can introduce a prospect to a business, while its website and follow-up communications help the prospect decide whether to take the next step.
Our earlier coverage of how local service businesses reach customers online looks at another part of that process, the information a customer finds when searching for a provider.
What the survey can and cannot establish
LinkedIn and Ipsos surveyed people with responsibility for areas including strategy, marketing, sales or hiring. Participants came from an expert network and a business-to-business panel. The companies were all in the United States, so the percentages should not be treated as global estimates.
LinkedIn sells marketing and sales tools and has a commercial interest in the subject. The preview does not provide a full breakdown by industry or publish underlying transaction records. The reported figures describe respondents’ answers, not an independently audited comparison of every lead source.
For an owner deciding where to spend time, the figures are a prompt to examine existing customer relationships alongside paid channels. Tracking the source of an inquiry through to a completed sale can show which relationships produce work the company can deliver profitably.
