Should I Offer Incentives for Referrals?
by Rita Zamora
Recently, a client asked me if I thought he should provide incentives for referrals. While intuitively he knew that providing incentives would encourage referrals, he also felt offering incentives might somehow make his existing clients perceive him as “desperate.”
Before considering whether to implement referral incentives, first learn whether it is legal and ethical for your specific profession. Next, carefully consider your existing client relationships. Are your existing clients loyal? Do many of your clients think you are the best in town? If so, they will not suddenly think you are desperate.
If your referral program is carefully tailored and promoted correctly, incentives will certainly enhance the referrals you already receive. The key is to customize your referral program to your specific client base, your business philosophy, and most importantly your own comfort level.