When you get referrals from others you need to pay up! Paying for referrals is a technique for getting more referrals. When you pay someone for referring your product or service, then guess what! You are at the top of their list when they refer someone again.
Word of mouth marketing is one of the best marketing strategies. Getting good referrals is essential to the survival of any business. Of course, you cannot survive on the referral alone, you’ll have to also deliver a great product or service.
Next time a client or customer find you and make a purchase then you should learn how they found you and if it was through a word of mouth referral then pay for that referral. The referrer will praise you from then on out, because the best time to get paid for something is when you didn’t even expect it. You don’t have to get fancy with it — it can be as simple as $5 per referral or 5% — or you can buy the referrer a cup of coffee or tea! A nice gesture can go a long way. Myself, I like to give 15% of the first payment.
Another good reason to pay for your word of mouth referrals is because it can develop a following. Whenever you decide its time to add a affiliate system to your website, you will already be armed with the affiliates you’ll need for your affiliate program to be an overnight success.