Employee Referral Program ideas?

Discussion in 'Business Operations' started by springbrook, Dec 22, 2013.

  1. springbrook

    springbrook LawnSite Member
    Posts: 6

    Well, getting ready for 2014 already and referrals came up in conversation. Do you have any programs in place? We have used an existing one for our employee, where if he makes contact with someone and we do an estimate that sells, we give him a bonus for that referral. We are trying to establish a concrete amount per referral or per job. As of now we offer $40 per referral. Should the job be a larger installation we would reward him with a larger bonus, is what I feel to be fair. I suppose this would lead to a sliding scale referral program. Any thoughts on this would be appreciated. Ken
     
  2. Vecchio Lawn Care

    Vecchio Lawn Care LawnSite Senior Member
    Posts: 905

    How about a percentage of a one time project and a set bonus for weekly jobs.
     
  3. CNYScapes

    CNYScapes LawnSite Senior Member
    Posts: 916

    nothing better than cold hard cash! offer them the $40 in cash. That gets peoples attention more than a discount
     
  4. springbrook

    springbrook LawnSite Member
    Posts: 6

    Thanks for the input guys.Still working this one out, but I appreciate the suggestion of a percentage of the big job and a set amount for average trimming jobs etc. Keep the comments coming
     
  5. A. W. Landscapers  Inc.

    A. W. Landscapers Inc. LawnSite Bronze Member
    Posts: 1,287

    What is your company's customer acquisition cost?

    If it normally costs your company $150 in advertising to gain a new client, then that is the minimum you should pay your employee for bringing that client to you. Then if you want to give him/her a percentage of the profits from that job as a bonus that is up to you.

    If you give your employee that "$150" make sure you record that under your advertising expenses as something like "advertising - employee generated business" so that you can more effectively track your advertising costs and evaluate the program's performance.
     

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