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Referral Programs

Discussion in 'Christmas Trees & Seasonal' started by ffjoe, Aug 24, 2011.

  1. ffjoe

    ffjoe LawnSite Member
    Messages: 25

    Hi all. I am new to the site, but have been reading some older archived stuff.. Some pretty good information out there.

    about me: this will be my 4th year in business and have around 50 houses. I wanted to do some kind of referral program where the customer gets a discount if they refer me to a friend.

    I thought, if they refer me to 3 friends, they get 10% off, 20% off???? This is where I am stuck.. what the best option would be???

    Also, i wonder how to work out the details of if the customer has already paid you, then 3 referrals come in, how do you honor their 10% or 20%??? I really dont like the idea of paying out at the end of the season when you go take them down... I thought that maybe you could offer the discount on the next year's hang... that way you can entice the customer to return...

    just wanted to know if you all had any ideas on what kind of referral programs and incentives you offer.

  2. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,751

    We offer a flat rate discount, no percentages, that would be too complicated, and not systematic enough. IE you offer 10% off, a customer A is spending 1000, so they would get 100, Customer B is spending 3000 they get 300, is Customer B referal worth 3x Customer A referral, absolutely not, they are worth the same.

    We offer a flat discount to both the referring customer and the same to the referred customer, IE, $10 off next years re-hang or this years if its early enough and $10 off this years install to the new customer.
  3. Gianninilandscaping

    Gianninilandscaping LawnSite Member
    Messages: 53

    i offer 5-10 bucks per monthly customer they refer me to which means they have to sign a monthly contract to get the money. even if i get one more account at 30 bucks to cut i make 120 bucks so i make an extra 110 minimum that month before expenses.. if they sign a full season contract the person who reffered them to me gets 2 free mowings... they like hearing the word free, it gets them motivated to talk to the people they know about it... thats just my view
  4. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,751

    That works for monthly mowing customers, but when it comes to lights we have not found a whole lot that works with the word "free", and being that we dont offer mowing services during the summer months, "free" doesnt work there either, we give MONEY off of the next fertilizer application for each new referral that signs up for a season contract, we have had customers end up with 1 or 2 round "free" but that is only because they referred enough cusomters at our $xx.xx referral discount to get the round next round "free"
  5. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,645

    we do 10%, but offer it in cash, credit for next year, or credit for this year on new product. Referrals almost always close since they have asked the friend already what they pay. looked at another way I would write a check today for 10 grand to get 100 grand in new sales. and having the residual rehang adds value to your business in the long run.

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