See Andy's other stuff:

LinkedIn
RSS Feed

Follow Andy

Contact Me >>

Should I pay for referrals?

Dear Andy:

A client of mine wants to have a referral program with his clients and wants to compensate those that give him new clients. I’m looking at a few solutions but thought I’d run it by you.

Any thoughts?

– LH

Hi LH –

My advice is always NEVER to provide incentives for referrals, especially money.

If someone isn’t willing to refer you because they love what you do, no incentive is going to make it happen.

A good referral program should be based on encouraging it, making it easy, and providing emotional rewards.

Hope that helps,

Andy

Got a question about word of mouth marketing? Use the comment form and I’ll answer it in an upcoming post.

Email to a friend:

Privacy: We won't save or reuse these emails.

Comments

  1. Andrew Rondeau March 24, 2013 at 2:24 am #

    Andy

    The vast majority of my clients do refer me for nothing in return.

    However I do have a couple of clients who have their own large ‘mastermind groups’ and they promote my website services within the group…in return for a referral commission.

    I feel that is fair due to the fact they have built up such a large group of people.

    Thoughts?

    Andrew