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I've never understood why people limit the rewards. If a free cut was what I gave as a reward for a referral, I would cut a customers lawn for free all year long if they referred me 32 new weekly clients. The second and third referral are not worth less than the first one.
Amen. I would spend alot more money on advertising and getting PITA work. I get a much higher standard of customers from my already high standard customers. I do not offer rewards up front, I simply say if your happy tell someone you know. If your not happy I would like to be your first call. If and when the refer someone, I usually half price a cut. Of course if a $200 per cut refers a $35 cut then I reward accordingly.