22 {{ upvoteCount | shortNum }}
22 {{ upvoteCount | shortNum }}

I'll never refer you business again...

by abelamorales
18 replies
So I recently landed two deals that you might have read about. One was for an auto repair shop in Brooklyn, NY and another is for a County Website in Tennessee (which I'm still working on closing)

The only reason I was able to get in contact with these hot smoking leads were because of a couple of friends that referred them to me. I do a lot of Social Media Marketing and although I don't always get a response from people, I know people are looking (Google Analytics says so!)

Recently, my supervisor at my day job referred me to his cousin that works for the auto repair shop which is how I got that deal. Once we closed on the deal and I received 100% of the payment up front, I gave my supervisor a $50 iTunes Gift Card (of course I gave him the option of what kind of gift card he'd like for the referral, but I knew he drank the Apple Juice so he went with an iTunes gift card)

Anyway, he was actually very psyched that I gave him an incentive for sending business my way. This has definitely settled well with him because he then said he's going to tell his other connections about me as well. People always want to know, 'What's in it for me?' If you're not providing an incentive, don't be surprised if they never refer you business again...

Sometimes people get too greedy and don't want to hand out any incentives for those who refer them business, however that's the wrong answer. Because of that referral, your business is going to grow.

This is how it will work:

1. The person who referred you will refer more people to you
2. Your referral will refer more business to you (at least 2 more connections)
*I always ask in the beginning of our conversations that once the project is over and they are content with the end product, if they have at least 2 contacts they can connect me with, they always say yes)
3. Your referral's referral will refer more people to you, etc.

Now you have started to build a business that has consistent referrals (best way to market) You'll be generating enough revenue to begin investing in other forms of marketing to scale your business up even more.

Anyway, moral of the story is to make sure you provide an incentive to those who refer business to you. It may help your business explode!
#business #refer
  • Profile picture of the author SashaLee
    Hi there,

    That's a good philosophy.

    We have a couple of clients who deal directly with lawyers. Lawyers refer clients to them. Our clients can't monetarily reimburse them for these referrals as the lawyer would be sanctioned.

    Instead, our clients refers CLIENTS to the lawyers. It's another way of incentivising without it being direct monetary reimbursement.

    All the best,

    Sasha.
    {{ DiscussionBoard.errors[8426346].message }}
  • Profile picture of the author Jason Kanigan
    I have a referral program I've been working with for a few years now, focused on accountants. It could easily be adapted for other professionals.

    The key factor I've put in there is a non-monetary reward system. Yes, the rewards go up in value as the number of referrals roll in from one source; however, there must never be the appearance of money changing hands. Also, everyone gets a thank-you note, and a Christmas card acknowledging all of the year's referrals.
    Signature
    >> How To Grow Your Online Business [FREE Training Video, No Opt-In, from 10+ Year Vet]

    >> For Agency Founders: The Fast Shortcut To Selling SEO, Leadgen, Webdesign & Other Services
    {{ DiscussionBoard.errors[8426414].message }}
    • Profile picture of the author Aaron Doud
      Originally Posted by Jason Kanigan View Post

      I have a referral program I've been working with for a few years now, focused on accountants. It could easily be adapted for other professionals.

      The key factor I've put in there is a non-monetary reward system. Yes, the rewards go up in value as the number of referrals roll in from one source; however, there must never be the appearance of money changing hands. Also, everyone gets a thank-you note, and a Christmas card acknowledging all of the year's referrals.
      Could you give a few more details on what you do here?
      Signature
      Aaron Doud - Sales & Success
      {{ DiscussionBoard.errors[8426590].message }}
  • Profile picture of the author abelamorales
    I'm with Aaron, may you provide us with some more details on how your referral program work?
    Signature
    "Get 1 FREE Free Play Per Day in Sports Betting"
    {{ DiscussionBoard.errors[8427013].message }}
  • Profile picture of the author Jason Kanigan
    It's proprietary, something I sell, and uses my skillset which most other people can't duplicate. Sorry if that's a bit harsh, but it's the truth.

    Just focus on the non-monetary rewards part, because there should not be the appearance of money changing hands/kickbacks. Looks bad for business.
    Signature
    >> How To Grow Your Online Business [FREE Training Video, No Opt-In, from 10+ Year Vet]

    >> For Agency Founders: The Fast Shortcut To Selling SEO, Leadgen, Webdesign & Other Services
    {{ DiscussionBoard.errors[8427017].message }}
    • Profile picture of the author umc
      Maybe my business is different, but I've never paid for referrals and pretty much built my business through them. Our cleaning clients love us and tell their friends and family and other acquaintances. People like to share what they like, and don't need to be prodded to do so. They love to be the person that knows someone that can help; it makes them feel important. May be a different scenario in the b2b realm though.
      Signature

      Simple "pay what you want" life coaching services online.
      Get out of your own way in business. It's personal. Click Here

      {{ DiscussionBoard.errors[8427078].message }}
      • Profile picture of the author PaulintheSticks
        Originally Posted by umc View Post

        Maybe my business is different, but I've never paid for referrals and pretty much built my business through them. Our cleaning clients love us and tell their friends and family and other acquaintances. People like to share what they like, and don't need to be prodded to do so. They love to be the person that knows someone that can help; it makes them feel important. May be a different scenario in the b2b realm though.
        In my health food store, I never had a formal referral system and got lots of referrals. I tracked where all new customers came from. Once I started giving an incentive (free product) and put a formal system in place, my referrals went up about 25%.
        Signature
        {{ DiscussionBoard.errors[8428319].message }}
        • Profile picture of the author umc
          Originally Posted by PaulintheSticks View Post

          In my health food store, I never had a formal referral system and got lots of referrals. I tracked where all new customers came from. Once I started giving an incentive (free product) and put a formal system in place, my referrals went up about 25%.
          I tried incentivizing it years ago and got nothing out of it. Then again, ours is a more personalized service and we may get different results because of that. Of course, our business is in a much different place now than it was then. It might behoove us to revisit that if we didn't already have a massive waiting list full of current referrals.
          Signature

          Simple "pay what you want" life coaching services online.
          Get out of your own way in business. It's personal. Click Here

          {{ DiscussionBoard.errors[8428374].message }}
          • Profile picture of the author PaulintheSticks
            Originally Posted by umc View Post

            It might behoove us to revisit that if we didn't already have a massive waiting list full of current referrals.
            Sounds like its time to raise your prices.
            Signature
            {{ DiscussionBoard.errors[8428385].message }}
            • Profile picture of the author umc
              Originally Posted by PaulintheSticks View Post

              Sounds like its time to raise your prices.
              In the process now. In fact, I recently posted here for advice on doing so and got some great feedback. When the hotel is full, it is time to raise the rent, as they say.
              Signature

              Simple "pay what you want" life coaching services online.
              Get out of your own way in business. It's personal. Click Here

              {{ DiscussionBoard.errors[8428416].message }}
    • Profile picture of the author Aaron Doud
      Originally Posted by Jason Kanigan View Post

      It's proprietary, something I sell, and uses my skillset which most other people can't duplicate. Sorry if that's a bit harsh, but it's the truth.

      Just focus on the non-monetary rewards part, because there should not be the appearance of money changing hands/kickbacks. Looks bad for business.
      NP at all I was really just wondering what non-monetary rewards you had found that worked. I should have been clearer in my quote/question.

      Never share all the secrets in the basket.
      Signature
      Aaron Doud - Sales & Success
      {{ DiscussionBoard.errors[8427284].message }}
  • Profile picture of the author abelamorales
    I guess a dollar amount may not be the best way to provide an incentive for those that refer us business, however we can all agree that there needs to be some type of incentive given in order to continue generating more referrals from those who've already provided us with one.

    For this bigger project that I'm hoping to close on, I'll probably give him a few choices of a gift with a value of $200 or less. (Big project)
    Signature
    "Get 1 FREE Free Play Per Day in Sports Betting"
    {{ DiscussionBoard.errors[8428377].message }}
    • Profile picture of the author PaulintheSticks
      Originally Posted by abelamorales View Post

      I guess a dollar amount may not be the best way to provide an incentive for those that refer us business, however we can all agree that there needs to be some type of incentive given in order to continue generating more referrals from those who've already provided us with one.

      For this bigger project that I'm hoping to close on, I'll probably give him a few choices of a gift with a value of $200 or less. (Big project)
      I like the idea of handling incentives on a case by case basis, if possible. Many of my customers wouldn't accept anything for referrals. Others greatly appreciated it.
      Signature
      {{ DiscussionBoard.errors[8428399].message }}
  • Profile picture of the author internetmarketer1
    This is a great thread all about incentives. It is definitely powerful since I have been doing it for quite awhile, but I have never ever thought of doing it in the way that it is demonstrated here.
    Signature
    Tired of Google?! Exhausted from all the rehashed trash?!
    {{ DiscussionBoard.errors[8430574].message }}
    • Profile picture of the author natebunger
      Originally Posted by internetmarketer1 View Post

      This is a great thread all about incentives. It is definitely powerful since I have been doing it for quite awhile, but I have never ever thought of doing it in the way that it is demonstrated here.
      Since we are getting ideas here on incentives, can you share some of your techniques? That is if you don't mind. Incentives are great since it shows how you really appreciate them and I love the idea of the thank-you note!
      Signature
      ##ATTENTION##
      Do You Hate Writing Sales Copy?
      I create killer copy for squeeze pages, video scripts, email auto-responders and sales pages. Click here to see reviews.
      {{ DiscussionBoard.errors[8443374].message }}

Trending Topics