Referral Program

A referral program is a program where a company active solicits non-employees to actively refer individuals to purchase from them. In return, the non-employee will receive either cash or other benefit from their referral. Akin to buzz marketing, but a referral program suggests action and benefits.

Everyone knows the power of a quality referral. From kids who debate what is the most cool to adults who want to explain why something gives the greatest value, we often listen up when someone gives us a referral. It says that someone with similar interests and values to ours finds merit in this product or service.

While referral programs can be effective, they do have one major drawback. Some people feel very uncomfortable about sharing the names and phone numbers of their friends and family.

Because of this, you must carefully watch your customers’ reactions when you ask if they'd like to be a part of your referral program.

If they have strong and immediate negative reactions to your request, do not try to overcome their objections. Tell them that you understand their feelings, and then change the subject.

Of course, we also want to feel we made up our own minds. Therefore, gain through referral means there is incentive for the referring person to follow through on the transaction.

Be a formal and monetized program or an informal suggestion made by another, referrals are often the most successful sales opportunities available.

Budget: $250 - $1,000 per month