How I Acquired And Scaled A $23K/Mo Online Referral Business

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Lamar Duffy - Refferal Hero CEO
23K

Revenue/mo

1

Founders

8

Employees

Hello! Who are you and what remote business did you start?

Hi, I’m Lamar, a serial entrepreneur, and an internationally recognized marketing expert. Since 2016, I’ve bootstrapped and scaled three e-commerce brands to over $1 million in revenue, all of which were eventually acquired. In 2018, I started a YouTube channel to share my Amazon experience, and I’ve sold online courses teaching others how to build an Amazon FBA business.

In 2021, I acquired ReferralHero, a powerful referral program software, and since then, my team and I have 3x’d MRR and doubled the number of customers, helping companies, large and small, grow their bottom line with this simple-to-use, yet amazingly robust referral program software.

What’s your personal history and the inspiration for your business?

My entrepreneurial journey began early. At 12, I had my own paper route delivering the local paper and started a lawn-cutting business for my neighbors. By 14, I was recruited for door-to-door sales for the same newspaper and quickly became the #1 sales rep. At 16, I started investing in the stock market and used the returns to pay for college. During college summers, I was the head coach for a local swim team of 120 kids in my hometown.

In college, I studied business and entrepreneurship, spent two years in network marketing, and launched a mobile app focused on local events. After graduating in 2012, I moved to China to learn international business hands-on, where I worked as a digital marketing director for italki and as an analyst for the largest angel investment group in China. My hands-on experience showed me the significant impact word of mouth and referrals can have on a business, which inspired me to acquire and grow ReferralHero.

Describe the process of launching your remote business.

The first business I launched that could fully support me was my e-commerce business in 2016. I followed a blueprint for starting an Amazon FBA business using resources I found online. From the start, I built all processes and assembled a team with a remote-first approach, which felt natural given the nature of the business.

However, Amazon FBA is a challenging business model because there are so many variables outside your control. As I grew the business, I realized that I wanted to move in a higher-tech direction and become less reliant on Amazon. That led me to start exploring opportunities in software, and I began looking at the fastest way to make that shift. Eventually, I decided the best path forward was to acquire a software business rather than build one from scratch. This allowed me to shift my entrepreneurial journey into the tech space quickly.

What has worked to attract customers and earn their loyalty?

We mainly rely on SEO, Google Ads, my personal YouTube channel, and referrals to attract new customers. However, none of that truly matters if you’re not focused on providing real value to your customers. I’ve become obsessed with ensuring that we deliver genuine value, as I believe that’s the key to fostering loyalty.

When customers feel like they’re getting something really meaningful from your product or service, loyalty follows naturally, and that, in turn, attracts even more customers. Providing value is the foundation that makes everything else—whether it’s marketing or referrals—work effectively.

Knowing what you know now, are there things you would have done differently when first starting out?

There are bad, good, and great business ideas, and over time, I’ve refined my understanding of what makes a great idea. A clear example from my own experience was when I launched products on Amazon. My best product, hemp wick (image of the prototype below), was a consumable, which allowed me to acquire customers once, and they would return to purchase over and over again. In contrast, many of my non-consumable products, such as flower pots, wall decorations, and slippers, were much harder to sell and retain customers over time.

It takes roughly the same amount of effort to start any business, so it’s essential to make sure the business idea you’re pursuing has the right criteria for maximum potential. If I could go back, I would have focused more on ideas that offered long-term customer retention from the start.

What has been the best part of starting a remote business?

From the beginning, I never felt the need for a permanent physical location. I knew that my business could inherently be remote, so I built all processes and assembled a team around that model. It made sense to design everything with a remote-first approach from the start.

When Covid hit, I had 12 employees, and while other businesses were scrambling to shift to a remote model, my team didn’t have to change a thing. I remember thinking, “We’ve been doing this all along.” We were fully prepared for remote work, which allowed us to keep operations running smoothly during the pandemic.

Of course, there are pros and cons to running a remote business. Sometimes I wish I could physically hang out with my coworkers, and working out of my second bedroom can feel a bit lonely. However, the positives—especially the freedom that comes with remote work—far outweigh the downsides.

What platform/tools do you use for your business?

Stripe – For payment processing
Webflow – For our website
Trello – For project and task management
Slack – For team communication
HubSpot – For CRM
Google Hangouts – For video meetings and customer support
Figma – For UX/UI design

What have been the most influential books, networking groups, podcasts, or other resources you’ve found?

Early on, The Lean Startup by Eric Ries was very influential for me, and more recently, anything by Alex Hormozi has had a big impact. I also currently listen religiously to the My First Million podcast with Sam Parr and Shaan Puri, as well as Prof G Markets by Scott Galloway.

In terms of networking, I’ve been part of several masterminds—some I created, others I was invited to join—which have been game-changing and incredibly valuable. I also recently joined the Entrepreneurs’ Organization Accelerator (EOA), and I’m excited to see how that experience unfolds.

Advice for other entrepreneurs who want to build a remote business of their dreams?

Pick an entrepreneur you admire and “watch what they do, not what they say.” This advice helps you understand how they truly think and run their business. Secondly, “just start”. You’ll never feel fully ready, but you’ll figure out the next steps as you go along. That’s what being an entrepreneur is all about—launch, learn, and adapt.

Are there any positions or internships you’re hiring for right now?

I’m always on the lookout for talented people who can contribute in unique ways. We currently have available roles in customer success, sales, marketing, and product development.

Where can we go to learn more?

Website: https://referralhero.com/
Youtube: https://www.youtube.com/channel/UCjq7xNW_-A96fRxoH0va4xQ
Instagrm: https://www.instagram.com/lamarduffy/