Referral Bonus

Discussion in 'Business Operations' started by Frontier-Lawn, Mar 25, 2005.

  1. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    I am going to offer a referral bonus to all clients. i was playing around with a free cut or so much $ off there bill for each referral that signs a year agreement. what do you guys do?
     
  2. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    Make it a fixed amount credit toward their bill. A free cut becomes a problem because not everybody lawn is going to be worth the same. A fixed dollar amount is fair, and easily applied no matter how big their yard is. I currently offer $20.

    Kevin
     
  3. lawnlubber

    lawnlubber LawnSite Member
    Posts: 186

    I never needed to give a bonus. I simply let them know I would like to expand feel free to refer me... Works great.
     
  4. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Posts: 1,383

    I say "Thank You"
     
  5. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    I do a $20 credit to an account that I get a full season agreement from as a referral. I have one customer this year that actually got 3 credits. 3 is my max......per customer.

    I would say that more than half of my clients over the years have come from referrals. I usually get 3-4 accounts a year from them. I figure to give up $20 for a $1000-$1500 account is a good bet.



    Derek
     
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi Frontier-Lawn,

    Quite often I will read how the most important thing is to ask your customers if they know anyone they can refer to you. If you don't ask, they just might not tell you.
     
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Why put a cap on it? Not to bust your balls or anything, but what's the difference if two clients refer 3 each or one person refers 6?

    Personally, I offer 1 free cut for each referal. The referred clients MUST be weekly service and use my services for the entire season. I also have a deadline for the sign-up date for the referred client. The referral incentive program is set-up for mowing services only.
     
  8. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    I give $ 20.00 credits for every referral. This works good for me. As far as I'm concerned if the referrals keep coming they can have free lawn care all year long.

    David
     
  9. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    my brother just had a idea last nite of $20 Gift cards to Reasturant's
     
  10. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Frontier, we started this idea when we first started mowing and its a great incentive but we hardly use it, BUT- when we tell customers about it they are thrilled. Our approach is a little different, we give them a % of the yearly total for any customer that they reffer that has signed a yearly contract. And at the end of the year we cut them a little check, its like getting another tax refund check. Some were as low as $50.00 and some are as high as $200.00. I look at it like this, your chances of getting that other customer are far less than if they were reffered by a friend who is another customer and some one they trust, to me its worht it.
     

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