How To Set Up A Referral Rewards Program

Having a referral rewards program can be a great advertisement for your company when done correctly. Nothing motivates people like a cash reward to spread the word about your business.

Determine what type of business you want
The whole point behind having a referral rewards program is to give incentive for people to pass referrals for a service or product that you offer. The part of your business that you're offering referral incentives for should be consistent with planning you've done for expansion in your business. It does no good to have more business in an area that you're not looking to grow.

Determine the reward amount
An easy way to give yourself an upper limit for the reward is to figure out how much profit will be coming in when the referral is given. Unless you're planning on offering a loss leader deal because you anticipate repeat business or additional product sales, you'll want to keep the reward amount below the minimum you'd make with the new client. The final amount comes down to where your business is at and how aggressive you want to be about getting new business. In general, the higher the reward, the more people will work to find people who might be a good referral.

Establish limitations
You probably don't want the referral reward to be combined with a coupon or another offer. You may also not want an existing customer to be considered a referral. Think through all the different ways that a referral could end up actually hurting your business, and put the limitations in place so it doesn't happen.

Spread the word
A referral rewards program doesn't do any good for your business if nobody knows about it. Start by letting your employees know about the program. They may be some of your best referrers. Tell other influential people in your circle and people who get excited about "matchmaking". Get creative about how to spread the good news of money for referrals.


Add your Referral Rewards online at the Referral Rewards Network.