January 5, 2012
Creating a Successful Referral Program
Word of mouth is one of the best forms of advertisement a company can have. It spreads fast, is free and it works. The best way to get business via word of mouth is to do an awesome job at whatever your service may be. However, some times a little incentive can be added to really jump start this marketing technique, and that is where a referral program comes into play.
In order for a referral program to work you really need to make the incentives worth it for your customers. My referral system uses a tiered system to reward for new clients. For example:
If the customer they sent me has a project under 400$ they get 50$, if they send one from 400-700 they get 75$, 701-1000$ gets 100$ and anything over that gets 150$. It insures that I am still making a good profit while rewarding my clients with a pretty good payday for just mentioning my name.
Another thing you need to make sure of is that you are paying your referrers in a timely manner. Nobody wants to have to wait months on months for there money. If you pay fast you are insured that they are going to use your service again and again.
The last step is to make sure that all your clients or customers know about the program, weather that be including it on your newsletter, telling them in person, emailing them individually about it or posting it on your web site. The program won’t do you any good at all if your customers don’t know about it. You also need to keep reminding them. Its a known fact that people these days are very forgetful. So don’t be afraid to mention it every month in your newsletter, Facebook and Twitter.
If you want to see any example of my referral program you can see it at: http://jibdesigns.com/referralworks .