Practical Sales Training™ > How To Convert > The Refer a Friend Effect
What is it?
The Refer a Friend Effect is when you offer an incentive to your existing clients to recommend your offering.
Why does it work?
It works because there are few things more powerful than a personal recommendation. There are also few things more motivating that being paid money to do something – especially something as simple as talking to your friends about a product or service you already enjoy.
How can you use it?
Think about your current client base. Would they be in touch with potential clients for your offering? If so can you offer them a financial or prize draw incentive to refer new potential clients to you?
Provide your current clients with a clear way to refer their friends and compelling reason to do so and your reach will grow exponentially.
Example: A meal prep subscription service.
They send this to existing customers:
“Love our meals? Tell your friends – and get £20 credit for every friend who joins.”
Your friend also gets £10 off their first box. It’s our way of saying thanks for spreading the word.
Why it works:
-
It’s easy: just share a link.
-
It’s rewarding for both parties.
-
It taps into the natural human behaviour of recommending things we enjoy.
You can apply the same concept in any business – just make the reward immediate, relevant, and easy to claim
See also