How to Reward Referrals

One of the best sources of clients is referrals. Prospects who’ve been referred to me by clients often hire me with almost no hesitation. That’s because they’ve already been “presold” by the referrer.

I like to fuel referrals by rewarding those who send them my way. I know my clients and friends send me referrals, not so much because of these “rewards,” but I like to give them anyway. In fact, the usual reaction I get is, “You didn’t have to!”

“Oh but I do!” I respond.

I do, because I like to show my appreciation to anybody who has helped me.

Here are some of the ways I’ve thanked my clients for referrals:

Commission. I’ve given a 20% referral commission in the past. I didn’t offer it, but a client asked for it and I didn’t mind giving it at all. But this arrangement leaves a bad taste in my mouth, because it feels like a bribe. I don’t do it anymore.

Discounts. I’ve offered a discount on future services for referrals who end up hiring me. I didn’t like this reward system, either, because the only way the referrer could enjoy it was to hire me. It didn’t feel like a complete gift to me. I’ve stopped doing this too.

Gifts. This is what I do now. These are small-value items that I know the referrer would appreciate. I’ve given gift cards for Tim Horton’s and Amazon. Not big enough to be bribes, but not too small to show my gratitude.

How about you? How do you reward people who send referrals to you? I’d love to learn more ideas for appreciating people.

2 Responses to How to Reward Referrals
  1. Mitchel Haas
    November 25, 2012 | 12:08 pm

    I completely agree with your thoughts about commissions and discounts. Clients are only human, and when you start go give time and services away to anyone, they tend to expect it in the future. Some clients may even think a little less of your services if you give them away. Gifts are fine as you mention, but my favorite reward is just plain ole good service. Many clients you have a good relationship with will need your help again, and going one step further in helping those clients who gave good referrals when they need your help again will no doubt give them incentive to refer you again. Plus, giving good service in general gives clients a good incentive to refer your services. If they feel they received a little more than they paid for, they like to make up for it by doing anything they can to help you out in return.
    Mitchel Haas´s last blog post ..Version 2.0 Released

  2. Jaroslaw
    January 15, 2013 | 5:26 pm

    very interesting content for me. some good ideas! funks ; )
    Jaroslaw´s last blog post ..Post #2

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