Buying opinions is rarely a good path as it affects your product or service credibility. Look at Amazon that controls more and more the reviews process...
By putting a price on referrals, those offering them will simply provide anything and call it a referral. If someone offers referrals at a price, ask them if they guarantee that the referral will lead to business. The best payment for a qualified referral is reciprocation.
Business from Mokena, IL
Answered on Dec 19th, 2017
I joined BNI, a business support & referral group. My fees were recouped within 5 months. Since I joined, my referrals have grown exponentially. So, I don't directly pay for referrals, but indirectly, I do.
We have always offered a referral fee to our clients for sending their family, friends, and co-workers. Most of our clients say it isn't necessary or request the savings be passed on to the person they referred.
I believe it can work as a marketing tool but it depends on your demographics.
Just remember if you do, you have to send them a 1099 if they accumulate over $600 in one year. So I would have the person referring fill out a w9.
Business from Daytona Beach, FL
Answered on Dec 19th, 2017
Never would I ever pay for a referral nor do I think I would have to. The "payment" comes in the form of return referrals not to mention lunches and a thoughtful gift now and then.
Business from Kennesaw, GA
Answered on Jan 29th, 2018
We do not pay for referrals. My Company has excellent incentives for those who refer, incentives that are life changing and so there's an endless stream.
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Answers (11-17)
Buying opinions is rarely a good path as it affects your product or service credibility. Look at Amazon that controls more and more the reviews process...
By putting a price on referrals, those offering them will simply provide anything and call it a referral. If someone offers referrals at a price, ask them if they guarantee that the referral will lead to business. The best payment for a qualified referral is reciprocation.
I joined BNI, a business support & referral group. My fees were recouped within 5 months. Since I joined, my referrals have grown exponentially. So, I don't directly pay for referrals, but indirectly, I do.
We have always offered a referral fee to our clients for sending their family, friends, and co-workers. Most of our clients say it isn't necessary or request the savings be passed on to the person they referred.
I believe it can work as a marketing tool but it depends on your demographics.
Just remember if you do, you have to send them a 1099 if they accumulate over $600 in one year. So I would have the person referring fill out a w9.
Never would I ever pay for a referral nor do I think I would have to. The "payment" comes in the form of return referrals not to mention lunches and a thoughtful gift now and then.
We do not pay for referrals. My Company has excellent incentives for those who refer, incentives that are life changing and so there's an endless stream.