I know many entrepreneurs that never have and never will spend money on advertising. Their entire business comes from people telling other people about their product or service.

Could you imagine never spending money on advertising, but always having a steady stream of customers on your door step begging for your product or service.

There is one catch to running a business only on word of mouth advertising. You must be selling an outstanding product or service. If you sell crap, the only word of mouth advertising you'll have is negative.

I'm sure you've heard the expression before. A satisfied customer will tell three people about your product or service, an unsatisfied customer will tell ten.

If your customers aren't happy you'll have to work ten times harder and spend more money on advertising to sell your product.

Positive word of mouth advertising is unbeatable for two main reasons.

1. It's free advertising. This is self explanatory. The less you have to spend on advertising, the more money you can put in your pocket and back into your business.

2. People are endorsing your product or service. Having someone endorse your product puts you at a greater advantage. When someone tells their friend about the positive experience they've had with your product, there is instant trust. People trust their friends. If a friend says your product is it, they'll instantly trust you. Trust is a huge barrier to break down when it come to selling anything, online or off.

To give you an idea of how powerful word of mouth advertising can be, take a look below. Your online business can grow exponentially without you ever even having to lift a finger.

Let’s say you start out with 10 satisfied customers you got with paid advertising.

If those ten people tell only 3 people each, you could get another 30 customers for free. But this is where it starts getting good because word of mouth advertising never stops once it gets going. If those 30 people tell 3 more people each you could have another 90 new customers for free!

90 X 3 = 270

270 X 3 = 810

810 X 3 = 2430

2430 X 3 = 7290

7290 X 3 = 21,870

21,870 X 3 = 65,610

65,610 X 3 = 196,830

etc...

You get the idea. More and more people just keep learning about your business all threw friends and associates. And it's all free advertising!

If you think the above numbers are a bit of an overstatement think again. Go to Google.com right now and do a search on Autoresponder Magic. Autoresponder Magic is an eBook that was written by Yanki Siler several years ago. More than 80,000 web sites advertise his Ebook on their sites right now for FREE!

When Yanki started out several years ago he didn't even know what an Ebook was. Today he has more traffic coming to his site in a day then most web sites do in a life time.

Make no mistake, word of mouth advertising is the most powerful form of advertising ever known and handing out free Ebooks like Yanki is one way to take advantage of it.