What do you offer as reward for referrals?

13 replies
Hey everyone.

I understand that the power of referrals is HUGE for your business growth potential and I plan to implement this also in my business.

What do you guys offer as a reward for a successful referral?

#offer #referrals #reward
  • Profile picture of the author Jason Kanigan
    WF has a Search function, Stevie.

    This question has been answered quite a few times already. Some people give a % fee; I recommend non-monetary rewards and acknowledgments.





    And here's a useful related post I found.
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    • Profile picture of the author StevieJK
      Awesome - thanks Jason!
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  • Profile picture of the author StevieJK
    Cool, some great advice in those threads.

    So it looks like it all comes down to two main methods of referral incentive:

    1.) Offer a monetary incentive (either discount or cash)
    2.) Offer a personalised gift (e.g. vouchers, tickets, gift etc)

    Dare I ask which one you guys have found works the best with small mom&pop business owners?

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  • Profile picture of the author Jason Kanigan
    It's up to you.

    I avoid monetary rewards because a) most people are quite happy to be acknowledged in some way, not requiring cash, and b) money can get you into trouble. Could be perceived as unethical. So I stick to liberal use of handwritten Thank-You notes, boxes of chocolate, bottles of wine, restaurant gift certificates etc. I keep a list and spreadsheet to ensure a referral source doesn't receive the same acknowledgement twice in a row, or something they shouldn't (allergic, non-drinker, etc.).
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  • Profile picture of the author StevieJK
    Ok, I have been thinking about this and I agree that I think more personal gifts are a great idea.

    In fact I found a gift voucher website that sells a whole range of gift vouchers for things like an overnight stay in a hotel, supercar driving, flight in a glider, case of fine wine etc

    All of the gifts I looked at like the ones I just mentioned were in the $100-$150 price range.

    Now, one of my services is offering a nice clean, professional looking website (Wordpress) for free, but I make money by hosting it for them. My cheapest basic package is $20 per month, going up to $50 per month for the pro package. I don't have set contract periods either, it's just a month by month thing.

    Now, if I offered a $150 value gift to an existing client for referring a new client to me - how do I stop myself from being shafted and how can I protect the value?

    i.e. say a client got his mate to sign up for my service and then left after 1 month - he could share the $150 gift with his mate, and all it would have cost him was 1 months fee (no more than $50)! I don't want this to happen.

    So I guess I could set a minimum contract for clients when they sign up - maybe 3 months? Or would it be best to say that they only get the gift if the referral signs up AND stays for at least 3 months?

    Also, are these gifts a little too appealing? Should I go for smaller/cheaper gifts?

    Thanks for any advice!

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  • Profile picture of the author ryanmckinney
    Referrals from non-clients - 20-30% of set up fee, depending on my mood, and the size and scope of work.

    Referrals from clients - Discounted services. I.e. if they are paying me $500 for SEO, then I will just bill them $250. If it lead to a really big deal, I will just give them a month free.

    Last time I did that for a client who referred me to a large client, he was so happy he straight up told me "I am going to work for you part time" , and .. he has.

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  • Profile picture of the author vndnbrgj
    I would either go for a cheaper gift, or give that gift if they pay in full for the first year upfront.
    Life Begins At The End Of Your Comfort Zone
    - Neale Donald Wilson -
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  • Profile picture of the author Jay Rhome
    Steve, first of all, RAISE YOUR PRICES! And by a lot. Then you won't even need to ask this question...

    If you go for cash, the amount matters, obviously. If you go for gifts, HOW you give them matters as much as what it is, and don't need to be as expensive. And if you have restaurants, spas, etc. as clients, you buy vouchers from them at 50% off, since you tell them you'll be giving these vouchers to your clients which are all business owners as well, most certainly choice prospects.
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  • Profile picture of the author StevieJK
    Thanks everyone!

    Will take your suggestions onboard, good advice guys.
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  • Profile picture of the author Runner900
    Good tips.

    StevieJK, if you've got the time, consider reading the book 'the referral engine' by John Jantsch. Recommended.
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  • Profile picture of the author redmleon
    Usually a discount, that's what other do also.
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    • Profile picture of the author want2knowhow
      Look into trying Send Out Cards service as an option. As a customer I've used my account from time to time to send personalized cards with candy, brownies/musical birthday candles/gift cards to friends and family. It helped out tremendously to be send emails reminding me that *it* was time (again) to resend! I'm going to upgrade and use them within my business to reward referrer's and customer's who renew 2-3 times or more!

      P.S--A GREAT, sneaky way to reward someone is to know when their birthday is...(hopefully it hasn't passed) and use that day to send them a Thank you/birthday card and gift! They will have probably forgotten they even told you their birthday...and it will blow their minds when they receive it, to know that they were even thought of on such a special day!

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  • Profile picture of the author philipdwyer
    It depends on what referral bought. I am in real estate and if I get a great referral, I have given up to 33% of what I make to they referrer
    Philip Dwyer
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