I made my presentation 10 Strategies for Referrals a few times this month to networking groups. Each time, paying for referrals was a topic of conversation.
I have the pleasure of working with friends and colleagues who are my referral partners. This means we offer services to the same ideal client and give referrals back and forth. We do not keep track of how many referrals are given but rather keep each other top of mind when meeting new connections. It works well and it is reciprocal so money is not exchanged.
I do not pay for referrals for the following reasons:
- Authenticity. Perhaps if I offered a cash incentive this may be the only motivation. I want people who are really pleased with my training to refer their friends and connections because they have received outstanding value.
- More Bookkeeping. I do not enjoy bookkeeping so why make it more complicated? I would not know how to record funds given or received for referrals. Other entrepreneurs I know have voiced the same concern.
- Amount of Money is Difficult. Some of my connections would really enjoy receiving $100 for a referral. Others would be insulted. Would a multimillionaire really care about $100? Probably not. Instead I give gifts such as a restaurant coupon they can use with their family or a food basket for their office.
Hope this is helpful and I would love to hear your opinion on this topic.
Contact me. Jill Schoenhofer (416) 816-4302