I once got screwed around by a client with three GLOWING references from highly reputable Mistresses. I've also had clients who were lovely with me be actively terrifying with other dommes.

I do not rely solely on references. I get a deposit from all new clients and reserve the right to a require a deposit every time if they mess up. I don't require references, but I still ask for them and I always check them when they are presented to me.

They definitely have their place, esp when LE is a concern. It's also true that many clients are reluctant to give a deposit to a less established domme and Mistresess new to the industry may feel that they cannot require deposits without losing too much business but can get references with relative ease.