Generate More Referrals By Offering Rewards

By Vincent Newton (c) 2008

In this era of instant gratification and "what's in it for me?" everyone thinks they're a winner who deserves special treatment. So website owners have to work hard to ensure their referral programs rise above the others.

You may have a great product or service that is loved by your customers. But unless you are offering tangible and instant rewards for referrals, you're missing out on a lot of extra revenue.

Here's why your referral program may not be working...

Everyone is convinced that they don't have enough time in the day to worry about their own needs, much less worry about yours. Asking for referrals is one thing. Actually getting them is another one entirely.

Unless you are dangling a pretty good incentive out there that pushes your customers' instant gratification button, guess what? You're going to find that many of your otherwise loyal buyers aren't going to take time to contact their circle of friends and help you make a sale.

Referrals can contribute tremendously to your bottom line

According to consultants Lois Bradley and Deirdra Makowiecki,

"The most powerful form of business marketing, by far, is direct personal contact and referrals from others. In fact, 80 percent of business transactions can be traced to one or both of those networking methods."

-- Pittsburgh Post-Gazette

"A recent survey found that more than half (53%) of Internet users had visited websites referred by friends or family members in the previous 30 days."

-- eMarketer.com

So, knowing that you are leaving plenty of money on the table and recognizing that it is going to take something extraordinary to turn your average customer into a product evangelist for you, what are your options?

Cash may be King, but there are other members of the "Royal" family to consider

Sure, people like cash; and giving money for referrals is a no-brainer. But is it your best option? Many experts think not. Research has shown that there are a number of people who actually feel uncomfortable earning money on the "backs of their friends." Never mind the fact that the money isn't really coming out of their friend's pocket. The mere perception of getting paid for providing a friend's name is a turn-off.

And then there's the matter of reduced profits. The more you give away, the less you earn. Sure, the argument can be made that "volume cures a multitude of sins." But why give away any money at all if there are equally enticing incentives available that you can get either for free or for a one-time low cost?

The word "free" gets everyone's attention. I'll bet it just got yours. But you have to admit, doesn't the concept of giving away something that you paid little or nothing for beat giving away as much as 30 - 50% of your hard-earned income? You bet it does!

Automatic Redirect To The Rescue

What if you could instantly reward customers who provide referrals with low-cost, high perceived-value Free Gifts?

And better yet, what if you could reward them instantly? No waiting, no fuss, no muss. Your customers provide you with referrals and you instantly reward them with something of value that doesn't hit you hard in your bank account.

And even better, what if you could do it automatically? How would you like to set up your referral program one time and never have to touch it again?

Well, I guess the only thing that could be better than all that would be if your referral program was so powerful that it actually made your visitors and customers want to empty out their entire address book and send you every name and email address in it!

That is EXACTLY the way that web sites like MySpace™ and FaceBook™ work. They have their own "Friend" adding programs that have been wildly responsible for building huge membership lists in a very short time.

Look at it this way - If FaceBook™ and MySpace™ are using this technology, shouldn't you?

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