Practical Sales Training™ > How To Convert > Incentivised Referrals

What is it?

Incentivising people to refer others to you can be a great way to add to an already great relationship.

Why does it work?

It works because if your clients are happy and they can get paid to recommend you, then it’s a no brainer. You get warm leads who are more likely to convert and your buyer gets an incentive.

The possible downside to consider though is that if people refer you ONLY because you incentivise them to do so, it can create a conflict of interest and be counter productive.

How can you use it?

You simply need to establish what kind of incentive you will provide and advise your customers of how they successfully make a referral to qualify.

Incentives could be

Money
Discounts
Additional Deliverables

Hypothetical Example:

A web design agency has a loyal client base but wants to grow without spending heavily on ads. They introduce a referral incentive:

“Refer a new client to us and get £100 cash or £200 off your next project.”

One client, thrilled with their recent website, refers two business contacts, both of whom sign up for design packages. The agency gains warm leads that convert quickly, while the client feels rewarded for spreading the word.

To avoid referrals motivated by money alone, the agency pairs the offer with a heartfelt note:

“We only want referrals if you truly love our work and feel confident recommending us.”