Referral compensation

Originally Posted by Vince Here's a question I've had for a long time. Should you compensate others who send you a referral? I've asked many of my friends and everyone's answer is different. Thank you in advance for your help.

One way to look at this is that your referral can become effective promotion of yourself. If you give referral, there is a good chance that the same person will refer you another customer/client. The same person may tell others about you, and you might get customer/client from those in 2-degree of separation ... etc. etc. etc.

I think referral compensation is a great tool to get more sales. I would definitely compensate someone for their referrals. I think it is a faster way of building your business and making more sales. People who send referrals should get a % of each sale made. You'll get more referrals that way.

Any client who gives a refrral should get a reward for the referral. I used to fax my owners every quarter and remind them of the 'Owner Referral' Program and the incentives that were involved. It always generated afew calls.

Susan

Originally Posted by susana Any client who gives a refrral should get a reward for the referral. I used to fax my owners every quarter and remind them of the 'Owner Referral' Program and the incentives that were involved. It always generated afew calls. Susan

In my industry, real estate, there are usually rules restricting compensation to non-licensed individuals.

Originally Posted by Jackie I don't know any off the top of my head but I would imagine there a more than a few industries where "bird dogging" or whatever else you want to call it is par for the course.

I think another example of bird dogging is the group vacation in which one person gets a free vacation by getting together a group of 20 or 30 others to make a group package. Often, well known personalitites will do cruise seminars or travel tours and people interested in learning from them or just being involved in their activities will sign up. The person promoting the cruise of tour is goven the vacation for free. Ski clubs also engage inthis sort of bird dogging.