Should you pay for a referral?
A reader asks how to reward clients and colleagues who provide referrals.
First, cultivating referral sources should be a key part of how you market your business. It is the easiest, most fun, highest yielding way to grow. It is also something that takes creativity and the skill to know how to ask (which has been covered in previous blogs, my book, etc).
I NEVER pay a fee for a referral. I want my network to come to me with referrals because they know I do great work and can help people in their network.
So I take them to dinner, send a bottle of wine, send something the spouse or kids will like — and I do this both for those who send referrals that close and those that send referrals that don’t close. They’ve done their job. The rest is up to me.