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Free cut w/ referral???

Discussion in 'Business Operations' started by MowinMopar, Mar 26, 2009.

  1. MowinMopar

    MowinMopar LawnSite Member
    Messages: 37

    I even have thought about creating a cut away coupon at the
    bottom of all monthly invoices encouraging the customer to
    talk to his/her neighbor about signing on......
  2. wbw

    wbw LawnSite Fanatic
    Messages: 6,099

    Sounds like a great idea!
  3. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Messages: 867

    I usually offer one free cut (up to $30) to customers who send me a referral that stays on for at least 2 months and makes timely payments. They usually try to refuse the credit like someone else said, but I give it to them anyway. Works ok, although I think people will refer their friends you if you are a good service anyway, whether or not you offer them a free cut, so I don't plan to offer it this year. Just give good service and ask for referrals. Once you get a good number of accounts the referrals will increase a lot.
  4. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Messages: 867

    Just remember that slow payers and cheapskates will refer their slow paying cheapskate friends! I know this from experience........
    Be selective of who you offer referral rewards to.
  5. MyLawnBiz

    MyLawnBiz LawnSite Member
    Messages: 10

    I think this is way too much for a customer referal. $100? If I put $100 into advertising or marketing I would expect to get 2-4 customers out of that. 1 free cutting OR the amount you charge the new customer (whichever is less) is reasonable.
  6. capnsac

    capnsac LawnSite Senior Member
    Messages: 702

    I would agree with dwlah's method. I take it one step further though. Say you give a customer 10% off their years bill every time they recommend a new customer to you. That would give them a huge incentive to refer more customers to you because they could potentially get their lawn care done for free with only 10 customers referred. An increase of 10 additional customers as opposed to giving one customer free lawn care for a year? Hmm, which is better...
  7. garmel

    garmel LawnSite Member
    from NE Ohio
    Messages: 107

    This year I went with a flat $25.00 for a referral and it's working. I wasn't sure if it would be enough but I figured I would start somewhere. Plus, I was getting referrals last year and I wasn't promoting any incentive......but I always give them something for a referral.
  8. TexasFire221

    TexasFire221 LawnSite Senior Member
    from Texas
    Messages: 480

    Hell you don't need new business. In other posts you make $300,000 plus a year and take your employees to Peru!
  9. ChrisGA

    ChrisGA LawnSite Member
    Messages: 41

    Im just starting my business with a whooping 3 lawns to cut lol but I offer a referral program I havent had any takers yet but I just started it last week.
    For me to give a referral reward the customer who was refereed must agree to a season of mowing

    refer 1 person=1 free mowing
    2 people = 1 free mowing and $10 off next mowing
    3 people = 2 free mowing
    5+ people 2 free mowings + 25 gift card to a local resturant.

    Might not be the best referral program and yes I might be loosing a little money but I will gain money in the long run with more customers. My goal is to get atleast 15 customers by the end of the season. Then once thats reached I will go to 1 referral= 1 free cut and leave it at that.
  10. yourmove

    yourmove LawnSite Member
    Messages: 76

    I currently offer existing customers 10% off their next service (usually a cleanup). I just recently had a refferal from this which gained me a terrific account. I just rec'd a check for $2700 to get this new acount ready for the season.

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