Taking it to the extreme, you could get as many referrals as you could conceivably handle, but if the majority of them are of low quality--hard to close or not very valuable when closed--you're no better off than if you simply sat at your desk and spent all day cold-calling.
Of course, at the other extreme, you might get too few referrals to keep your business healthy and growing.
You might close a high percentage of them and provide top-notch service, but if you're not getting new referrals, your business may become stagnant.
You want to be somewhere between these two extremes.
One of the most important things you need to do is allow enough time to keep the proverbial pipeline filled.
A common mistake of many--particularly those who work alone--is to rush to one's "new" or "hot" referrals and spend all available time on those, forgetting that there is a lag time on not only finding new "prospects" but also in turning those prospects to closed sales.