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Word-of-mouth referrals can be a powerful way to generate business. I recently read an article by Chip Camden about five approaches one could take to reward referrers.


1.     Offering a fixed amount payment is a cost effective way to encourage a referrer. A fixed payment can be paid when a contract has been formulated with a referral or once you begin to receive revenue from a referral.

2.     A percentage of the business gained can be given for a fixed amount of time. This should depend on the amount of money generated from the business created as a fixed amount can find you over compensating. The period does not need to be lengthy, for instance the first four to six months of the contract.

3.      A referrer that is also a client can be given a discount on their next project or future projects for a fixed amount of time. This will encourage them to provide referrals and also give you their business as they benefit from a reduced rate for your service.

4.   A referral that is also a consultant will appreciate a referral in return. When a consultant refers you a client it demonstrates their concern about the solution being provided rather than their own personal gain. You can reward their act of generosity by returning the favor, knowing they will appreciate any client you send their way.

5.    A non-monetary gift. Some referrers may much rather value a gift of sentimental value as they appreciate that the time and effort taken is more than that of a payment policy. In this case it is important to make the gift personalized to the person’s taste rather than send the same gift to all referrers.

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