How to Create a Referral Rewards Program

If you want more referrals in your business, you need to set up a formal referral program. By a formal referral program, I mean you need a way to let people know that you accept referrals. Tell them how to give you a referral, and then reward them for every referral they give.

 

The best way to set up a referral rewards program is to have it tiered into different levels so there’s a bigger reward the more referrals a person gives to you. You can set it up so that if they give you one to three referrals, they get a five dollar level reward every time they give you a referral. But then when they send four, five or six referrals they receive a ten dollar value gift. For seven to ten referrals, you may want to give them a $15-20 gift.

 

When you are picking out gifts for your referral partners, pick something that will create a fun experience that they will use up and look forward to receiving again.  This might be a food or spa product.  It could be a gift certificate or gift card for movies, music, books, or a restaurant.  Make sure that the thank-you gift is consumable.  This gives them an incentive to refer to you again.

 

Put all this information in a letter and send it out to your referral partners so they know the more people they refer to you, the bigger reward they will receive.  That will give them a bigger incentive to work their way up your referral ladder.

 

Some businesses also create a V.I.P. program for people who give the most referrals in a year.  You can give them special V.I.P. status at an event or a V.I.P. special reward at the end of the year. You could have a holiday party that’s just for those V.I.P. partners and for your clients. This gives more status and recognition to your referral partners for the referring that they do to you.

 

It makes people want to refer more if they know they are going to get more in return. They see that you greatly appreciate the time they take and the trust they give to you by giving you a referral.  If you want to get more referrals, think about implementing a tiered reward system where the more referrals a person gives to you, the greater the referral gift you give to them.

 

If you want to set up a referral program for your business, contact us.  We have lots of ideas on choosing the right incentives to reward your referral partners so they keep sending you more referrals.

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