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Referral Fee?

by PaulintheSticks
4 replies
Back when I owned a health food store, I gave my customers $5 in credit for every new customer they sent to the store and also gave the new customer $5 off their first purchase. This worked very well.

Just wondering if people have tested giving referral fees or free services to those referring offline clients and if so what the results were.
#fee #referral
  • Profile picture of the author DaniMc
    You can give services or a credit towards services as a referral also. This is better than cash because you are providing the service for what it costs you and placing "x" retail value on it.

    But...if you are not in an ongoing service type situation, cash works well. $5 is a bit low though. If you know what your average customer acquisition costs are, you could pay 75% of that as a payment. THAT would get a lot more attention in my opinion!
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  • Profile picture of the author Auzan
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  • Profile picture of the author seanbarrington
    There is much to be said about structure your business through referrals. It is a lot cheaper than advertising and less time-consuming than cold calling. And there is nothing like having clients who think sufficient of your services that they are ready to recommend you to others.

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    • Profile picture of the author Irish Intuition
      The best way to get referrals is to just ask. Beats any rewards program.

      If I were to have a 'reward' aspect to my referral system, I would
      for sure focus it on Facebook. It is easy for someone to share
      your page. You could reward those that share.

      You could also create contests. I know Gibson Guitars did a 'share
      this for a chance to win a Les Paul'... you can imagine how much
      sharing took place. They also did a nifty job at email capture.
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