Should You Offer Commissions For Customer Referrals?
As a small business owner you may find yourself in a situation where you want to partner with another business but they are asking for a commission on your services. You will want to be prepared to handle such a request BEFORE you find yourself in this situation. Whenever someone asks you for a commission in exchange for marketing your product or service, it is basically an affiliate or referral program. This can be one of the most powerful forms of marketing because it promotes word-of-mouth marketing. Who better to refer clients or customers to you than someone who fully understands the value of the services you have to offer? Often these people are your current satisfied customers, or as is the case with this question, they may be strategic partners. Strategic partners are those individuals or businesses who agree to refer business to you, sometimes in exchange for you doing the same for them, or perhaps for a commission. Either way, it is important to make sure it is a win-win situation for both sides. If you consider these individuals or businesses are in effect doing your marketing for you, then you realize paying a referral incentive or commission is merely a marketing expense. When you consider that referred customers are "warm leads" and are a lot more likely to purchase from you than a "cold" prospect because they come with an endorsement from someone they trust, then you see even more how valuable this referral marketing can be. My suggestion is to approach this as a potential business partnership. Make sure they completely understand the benefits you can provide to their customers and let them know you would like to design a mutually beneficial partnership. Before you offer to pay them a commission, find out what is important to them. What are they looking for that you can possibly help them to get? In this case the potential partner IS your target audience so know them and approach them with a relevant proposition. Be willing to pay a referral fee or commission if that is all they are interested in, but also be open to other ideas. I have negotiated some amazing partnerships just by spending some time talking and brainstorming with potential partners. In other cases I have straight affiliate/commission partnerships. It all depends on the partner and how we determine we can BEST HELP EACH OTHER to be successful. (C) 2005 Debbie LaChusa 20-year marketing veteran Debbie LaChusa created The 10stepmarketing System to help small business owners successfully market their business, themselves, without spending a fortune on marketing. To learn more about this simple, step-by-step program and to sign up for her FREE audio class and FREE weekly ezine featuring how-to articles, tips and advice, visit http://www.10stepmarketing.com
Related News
MASN beefs up social networking offerings - Bizjournals.com
MASN beefs up social networking offeringsBizjournals.com, NC -19 hours agoThe Mid-Atlantic Sports Network has launched a social-networking hub as it continues to bulk up its infrastructure. The 3-year-old network, ... |
Friendster Deploys Google's OpenSocial API - PC Magazine
Government's social networking warning - The Age
Government's social networking warningThe Age, Australia -10 hours agoVictorian Deputy Premier and Attorney-General Rob Hulls said in light of new research showing employers were using social networking sites to research ... |
WBS Connect: Innovation is Key to Success in the IP Networking ... - TMCnet
Clueless about trading? Start networking online - The Associated Press
Clueless about trading? Start networking onlineThe Associated Press -12 hours agoZecco and TradeKing, which tout themselves as among the first brokerages to offer online social networking, are now adding functions that go beyond the ... |
SportsFanLive arrives: social networking for sports fans - Ars Technica
Konnects Offers Easier Way for Early Stage Professionals and ... - MarketWatch
Social networking at the branch, the downside - NetworkWorld.com
Social networking at the branch, the downsideNetworkWorld.com, MA -21 hours agoThough there are benefits to bringing social networking sites, such as Facebook, Linked In, MySpace, and YouTube, to the workplace, there are disadvantages, ... |
HANA Employs New 1394 Over Coax International Standard for HD Home ... - MarketWatch
New Service Applies Social Networking to App Testing - New York Times
|
|
 |
|
|
RELATED ARTICLES
Marketing Essentials: The 15 Second Elevator Speech
You're at a conference. Someone steps in the elevator, notices your name tag and asks, "So what do you guys do?" Quick -- what's your answer? You've got about 15 seconds before the doors open.
Network Marketing Secret: On Becoming the ?GoTo? Guy
For years we've been taught to identify ourselves as reps for one XYZ company or another.
How to Keep from Sounding LIKE Totally Stupid
June is reality check month. Lots of the resolutions have been made and most are already broken. It's time to take a hard look at where you are going in 05 and beyond. One of the most important things you can do for yourself is to update all your personal credentials including your bio & your resume.
Are You Sitting With The Right Company?
When I walked into Dallas's famous Y.O. Ranch Steakhouse, all I wanted to do was to enjoy my New York Strip steak, relax and quietly review my notes for the following day's speech. Little did I know that a valuable business lesson awaited me at the table.
Networking to a New Life
Research shows that talking to strangers -- not people in your comfort zone -- is the single most powerful key to a creative career and business move. Yet many people resist. Sometimes they don't understand the concept of networking. At other times, they set impossible goals. Here are some guidelines for network for your second career, home or life.
Real Business Networking Doesnt Happen at Networking Events
Real networking isn't about handing out business cards at a networking event, or seeing how many you can collect before the event is over. Real networking is about relationships that, when cultivated properly, will breed referrals and positive word of mouth about you and your company.
Lesson 69 - When Networking Events Fail
The Story
Who Are You and What The Heck Do You Do?
A few years ago, I was attending a family function when I ran into a cousin of mine. Having not seen her in more than three years, she told me that her son had graduated from law school and had passed the bar examination and was now a lawyer at a very prestigious law firm in New York City.
Ten Simple Steps to More Customers with Better Networking
Networking is a great way to meet people in a "non-selling" setting. So, don't sell. Meet and greet. Ask people about their businesses. Be friendly and relaxed. Enjoy yourself. Get to know people. Above all, do not sell.
Land the Ideal Job Using Social Networks
With at least 60% of job-seekers finding employment through networking, it's no wonder that people are turning to their colleagues and acquaintances for advice and help in finding employment. The old adage, "It's not what you know, but who you know" rings true when it comes to sources of labor in today's economy.
Four Brainless Self-Promotion Techniques To Avoid
Many workers think that their hard work will speak for itself. They quietly do their job and stay late at the office hoping that their boss will notice their efforts. However, when a job promotion or pay raise goes to someone else, many employees retreat into a corner, wondering what happened.
Five Stumbling Blocks To Successful Networking And How To Overcome Them
The ability to connect with people is essential to success in any business. Professional networking events present opportunities to interact with others on a personal level and to develop profitable relationships. These occasions are critical for anyone who wants to grow a business or promote a career.
Build Your Business through Strategic Networking
Networking ? it's the latest business trend. Or is it?
Make Money on the Internet - The Lifestyle Advantages of Professional Marketers
Some of the most successful businesses in existence today started in a box room, bedroom or garage. It isn't how you start out to make money at home that is important. What really matters is that you had the courage to begin.
Why Bother With Social Networking Sites Like LinkedIn?
Q: I think I understand the value of networking as well as the next businessman, but
for the life of me, I don't really see what sites like LinkedIn, Ryze and Ecademy can
do for me. What's the point of these sites other than just as some sort of digital
popularity contest?
Five Steps for Expanding Your Customer Base with Guerilla Networking
As a single company, it is impossible to provide your customers with all the services they desire for every aspect of their life; but with guerilla marketing, you can come close. By partnering with companies that provide different, yet complimentary, services to your business, you can create a network of reliable resources for your customers. In turn, your company will gain credibility and strength from the size and stature of the group.
Measuring Value for a Networking Group
How do you measure a group's worth to your organization?
How to Avoid Falling Asleep Behind the Conversational Wheel
Think about the last time you feel asleep behind the wheel. Dangerous, isn't it? Even if it's just for a split second, nodding off while driving puts you and the other drivers at risk.
Should You Offer Commissions For Customer Referrals?
As a small business owner you may find yourself in a situation where you want to partner with another business but they are asking for a commission on your services. You will want to be prepared to handle such a request BEFORE you find yourself in this situation.
The 4 Attitudes of Awesome Hospitality
Hospitality relates to the Latin term philoxenia, or "the love of strangers." And stranger is defined as "someone with whom you have not yet been acquainted." Therefore, your objective as a builder of organizational front porches is to extend love to those with whom you have not yet been acquainted.
|
