The 100% Money Back Referral system offers clients 100% of their money back on an item they purchase if they refer or introduce a certain amount of people.
For example, let’s say that you are a landscaping company and you offer your services to do some work for $200. You can set the amount at whatever you think is reasonable, but you can make it so that once a person refers 5 people, they get 100% of their money back.
The 100% Money Back Referral System can be tweaked and modified. You can make it to where they get 50% of their money back, or whatever number works for you in terms of return on investment. When calculating return on investment be sure to calculate the sales made to referrals. For example, if you normally charge $100 for a product and you offer 100% money back for 5 referrals that means you would have made a total of $600 including the referral sales.
Giving $100 back to the person who gave the referrals still brings you out ahead. Just make sure to calculate how many referrals you need to come out ahead when offering this referral system.
Another important thing to remember is this: You must communicate this clearly and effectively to your customers and referral partners. The best referral system does not matter if people don’t know that the referral system exists.
Finally, be sure to track the referrals that come in. This will help you to tweak your referral system along the way to get the most from the system.
Now what do you do if you have a service that is regulated and you cannot give away your services (example, you are an insurance agent and only make money on what you sell as a commission). This will take some creativity. What you can do is you can perhaps give a gift (check regulations) once a person reaches a certain number of referrals.
An important note for a referral system! Some times Cash/Money is NOT a good referral motivation tactic.
Why? Because a lot of times people will only spend the money to pay the bills. You want to give a referral prize that stimulates the imagination, and unfortunately a lot of people cannot imagine what they would do with an extra amount of cash except to pay bills or pay debt. So get something exciting in their hands that will entice them to give more referrals. You can simply make it a gift card to a popular store or restaurant or you can have prizes such as the latest technology.