paying for referrals

I've read this whole thread.. and this is what I think... My three pennies..

what I do.. I give out cards to people that bring in electronics scraps to our store, We've a storefront along with a recycle warehouse, and on the back of the cards, its says, 10.00 off of store purchase of 25.00 or more, or 25.00 bucks off for computer repair .. and it works really well, give them an option.. Giving out a flat referral, is not a good thing, lets say this person refer someone to bring in one computer ok You paid them 25..then another person brought in a computer there another 25. and lets say two more.. people brought in computer that was referred,, thats 100.00 that you just paid out... You're not going to make a hundred bucks on four or five computers.. so best to do an option..

again We sell, computers, repair computers, and recycle, and We fix phones.. and much more.. so We're able to do it, You might need to dibble with the referral fee, but don't over extend yourself put a min requirement so you can make money and not lose money..

here a good example.. sorry guys but just one more.

We offer five dollars off when people bring in a food donation... We've a min why... if they can only bring in a can that worth 25 cent its not worth the 5 bucks... So we put must bring in 4 cans of goods.. then it worth it ..

Good Luck in your decsion.

Are you getting any referrals now? How many do you think you will get if you were to pay the fee? Will you offer this fee to anyone or just big jobs that you think may have contacts to get you more?

I don't have a policy "in place", but I will always tell my regular computer guys that provide me with scrap that I will kick back to them if they can refer a load to me. Of course they know what I pay for scrap and if they can get it right they will just get it and then sell it to me.

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Originally Posted by hobo finds

Are you getting any referrals now? How many do you think you will get if you were to pay the fee? Will you offer this fee to anyone or just big jobs that you think may have contacts to get you more?

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Yes, I get referrals all the time. My referrals will come from past customers, or from people that I have talked to, that talk to others needing the service.

Most likely what I will do, is one of 2 options.

1. Offer a special discount off their own pickup for every individual that they refer, that gets a job done with VIP.

2. Once they refer say 4 or 5 people, then I give them a gift certificate to their favorite restaurant for dinner for 2 or their whole family, etc.

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Originally Posted by bnbsfsd

I've read this whole thread.. and this is what I think... My three pennies..

what I do.. I give out cards to people that bring in electronics scraps to our store, We've a storefront along with a recycle warehouse, and on the back of the cards, its says, 10.00 off of store purchase of 25.00 or more, or 25.00 bucks off for computer repair .. and it works really well, give them an option.. Giving out a flat referral, is not a good thing, lets say this person refer someone to bring in one computer ok You paid them 25..then another person brought in a computer there another 25. and lets say two more.. people brought in computer that was referred,, thats 100.00 that you just paid out... You're not going to make a hundred bucks on four or five computers.. so best to do an option..

again We sell, computers, repair computers, and recycle, and We fix phones.. and much more.. so We're able to do it, You might need to dibble with the referral fee, but don't over extend yourself put a min requirement so you can make money and not lose money..

here a good example.. sorry guys but just one more.

We offer five dollars off when people bring in a food donation... We've a min why... if they can only bring in a can that worth 25 cent its not worth the 5 bucks... So we put must bring in 4 cans of goods.. then it worth it ..

Good Luck in your decsion.

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I definitely get what your saying, and trust me when I say, that I have already decided that it wouldn't be something like that.

My minimum for scrap pickup is $35 to $40 depending on location, what I am getting, and how much work is involved.

So, most likely, it would be one of 2 options that I just mentioned.

I am still racking my brain.

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Originally Posted by BurlyGuys

Just my too sense here, but as a member of BNI we have found that paying for referrals is mostly ineffective and does not leave a favorable impression of your business.

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I asked a client what would be appropriate and he said they could not accept cash gifts. But if I bought lunch for the next managers meeting I could pitch my services to all of them.