Do you give out commisions?

When someone not related to your company refers someone he knows to your company, and you get a job out of it, do you give the referrer a commission for referring the client to you?
If so, what is your commission?

It’s never come up. In the rare occasions when someone has referred me multiple clients, they were always the same type of referral essentially. It can be subjective, but also you have to think about the fact that every new client is going to be different, so unless you have a fixed referral bonus, the amount could vary anyway.

Also, since you are not advertising this referral bonus, if they get it a second referral and it’s a different amount … I would hope your client isn’t going to ask why it wasn’t as much as last time. :stuck_out_tongue:

If they do, I would simply tell them that the amount is variable depending on the project. Hopefully the clients I choose to work with wouldn’t get too greedy or selfish to actually have an issue with an extra bonus sent their way. :wink:

That sounds like a nice idea, might implement that :slight_smile:

I’ll give you this money so you can give it back to me. Doesn’t cost you anything (except for time of course) and the client has a nice discount. Brilliant, I love it :smiley:

That sounds rather subjective. Did people ever question why you them x amount and not y?

No, I’m not thinking about actively advertising it. Just giving back to those who help my business :slight_smile:

I don’t have a set referral program, usually it’s on a case-by-case basis, but I do offer them.

The referral is usually based first on who is giving me the referral. If a friend or family member is referring me, usually I will usually figure out a gift of some type (or perhaps a gift card).

If it is a previous client of mine, I will determine what the client would be able to utilize the most. The first option I consider is taking the referral amount and offering it to them as credit toward their hosting / maintenance / new project / etc. That way you could spur new business from them as well. Perhaps they were considering upgrading their website but didn’t have $500 to spend on it … well if they referred a new client and they have a $200 Referral credit to use, they may sign on.

The second factor is how good the referral is and how much work is involved in selling the referred client. If the referred client comes to me already convinced that they want to work with me because of the shining testimonial they heard, I’m more willing to give a higher referral bonus since it’s less work I need to do. If all they did is give them my name and I still need to sell them and do the whole nine yards, I’ll still offer a referral, but not as high.

If you are going to actually market your referral program, then you’d probably want to have some sort of standard offering, but I don’t usually advertise the end game. I always tell my clients that I would appreciate any referrals they could pass my way. The good clients will do so anyway, even without some sort of prize dangling in front of them. They’ll just appreciate that result even more if they don’t expect. it. :wink:

The greatest leverage in the world is having your customers sell for you.

First thing: stop using the word commission. It puts off the wrong vibe. Here’s what I call it: a “Referral Bonus”.

When someone is kind enough to pass you along a new contact that turns into a paying project - give them a “Referral Bonus”.

Generally, for a basic website project I give out a couple hundred bucks. There’s no set percentage - but if a project has a bigger scope, I’ll give as much as I can without digging too far into the project’s profit.

And each time I pay a Referral Bonus I pay in $100 bills. I include a nice thank you letter. People like getting a cool $100 - and the idea is to get them to keep sending you those new clients.

In fact, for some companies - referrals can be the primary marketing model. By implementing and standardizing a “referral system” (often referred to as an “awards program”) you can add a whole layer of new business to your bottom line. And if you do it right, the results can be exponential.