Hi,
I have thinking for a while about setting up a referral programme for existing clients, something whereby if an existing client refers a successful new client then they can have 10% off future invoices for the duration of the new client. I am just wondering what people think about this idea and how to go about implementing this. Should have a contract drawn up with the existing client to state exactly how much discount they would incur or should other things be put in place.

Any advice is greatly appreciated

Karen

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Hi Karen I think a referral incentive can be a great way to encourage clients to send their colleagues and contacts your way.

In the beginning of my practice I didn't send more than a sincere 'thank you' and maybe a special gift for each of the many referrals I received and that was fine - but once I started getting bigger contracts as a result of those referrals I really wanted to let my clients know that I was grateful not only for the kind, positive words that sent the referral my way but for the added business. I now send 10% of the new client's first [paid] invoice to the referring client as a thank you.

While I don't provide ongoing fees for referrals I know there are some virtual assistants who do. I'm not sure if contracts are put in place for that kind of thing or not. I'm guessing not, but I'll be curious to learn if anyone actually does set it up that way.

However you set it up make sure you do so in a way that truly serves your business goals and isn't going to be a drain on your time or finances.

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Karen,

I sat in on a webinar today about this particular topic.

A rather successful VA-coach (who was the guest speaker) indicated that she expanded her 'six figure business' simply by asking her clients for referrals and then paying 10%, just as Tess mentioned above. This VA-coach paid out the referral fee for the life of the new contract and although it did bring in fabulous new customers, it did become a tedious task to maintain.

This VA-coach mentioned that referral incentives were a great means to grow her client base, however, she would not recommend starting the 'life of the contract' retainer payout to those seeking advice about setting up a referral program.

She would still send out referral payments for new contracts but would only do so for smaller periods of time such as 3 months or 6 months.

Those clients who received more than one referral check were more likely to refer someone else so that they could continue to receive the additional monies.

But much also depends IMO on the type of work that you offer as well. If you offer say, article marketing as a service and the fee is $XXX then a one-time referral fee for a 'SIGNED' contract would suitable. If the VA is offering ongoing retainer services and receives a referral than a 3 month or 4 month retainer %age fee would be suitable.

Payouts are a nice way to say thank you for the referral.

Janine

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Thanks for the advice guys, I will take that onboard and come up with something appropriate
Karen

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Thanks for the above information. I would like to include a refferal program in my business and you have given me some good suggestions.

Seems like an "affiliate program" of sorts and I think it's an excellent idea. With all of your SEO positioning, social media strategies, and networking events, most of your clients are going to be repeat and referrals. I think letting your clients know how much you appreciate their business is just another aspect of doing good business.

I think giving a percentage to clients for referrals is a good marketing move. Everyone likes to feel appreciated and what better way.
Sherlyn, Author/Speaker/Publisher

I got some good ideas from these posts and will take them in consideration as I have thought about a referral program too.

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Stephanie Cogeos
Wordprocessing & Design

I saw a webinar last year where the speaker also mentioned referral programs and she suggested giving one free hour of your services to the client who sent the referral as a thank you. I am signing a new client tomorrow after I send him the contract and I am going to tell my client who sent him my way that I am crediting her with one free hour.

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Paulette R.
Rhythm Virtual Solutions | Alpha & Beta Translations

A referral program is nice because it's extra money in their pocket, it's also nice to offer it to acquaintances because the more people talking about your business and getting your name out-the better! Good Luck!

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Lauren & Melanie - VaVa Virtual Assistants www.VaVaVirtual.com