Rick,

It probably was me that said "never give anything away for free"... because then there is no value in it to the customer.

However, I think there is value in this type of a referral system. You are basically having all your existing customers act as salespeople. And really you are giving away a month for each referral until they get five... and how many are EVER going to get more than 3 or 4?

I guess another idea would be like you said, give them cash. I'm just not sure $20 is enough... maybe $50 per referral would get things rolling? :)

On a slightly different topic, we do give every employee $20 for any referral (that includes installers, receptionists, bookkeepers, tech support, etc.). This has worked VERY well and I'm sure has paid for itself every single month from new customers.

Travis
Microserv

RickG wrote:
Travis,

I thought it was you who once told me "never give anything away for
free". I've been sticking to that as best as possible with my company
and whenever I stray from it I get bit each time. I find that the only
people who truly appreciate our service are the ones who pay. In fact,
the more the pay, the more they appreciate it. The people I gave deal
to are the worst customers.
With that said, we are kicking around giving $20 cash for each
referral. I've done this in my past life as head of internet companies
and people love cash! If you really want to make some news, give
matching dollars to the charity of your choice.

Just my .02 :)
-RickG

On Sun, Oct 12, 2008 at 3:54 PM, Travis Johnson <[EMAIL PROTECTED]> wrote:
  
Hi,

I'd like to hear about any referral programs that anyone has implemented
that seem to be working well. I heard about one a few months ago that I
thought was very interesting:

For every customer that signs up and is installed, the referring
customer gets a month free. The real deal is after 5 referrals, that
customer gets their internet for free for life (or as long as they have
at least 5 people referred and still active). Now, I know this sounds a
little scary, that you may give away 20% of your service... but the
thing that was interesting is the person taking about this said 99% of
their customers never reached 5 referrals. Most would get 2 or 3, and
then that was it.

Thoughts? Ideas? I'm ready to try something. :)

Travis
Microserv


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