Imagine that you could suddenly hire 50 sales people to sell your products and services, and you do not have to pay them until they sell? Wouldn’t that be fantastic? As you consider the possibility I am sure the reality of how to manage all the logistics seems unreasonable to you, but what if this 50 people also give you their money and still sell your products and services? Sounds Incredulous right? Well that’s what happens when you make your customers work for you!

How would you achieve this? You can achieve this through a referral system and I am going to show you how to build a referral system. A referral system is an active strategy that you use to prompt your customers to help you generate more customers. This system should be in-built into your sales process to ensure that you consciously utilize the opportunity.

Your referral system can be made up of the following touch points:

  1. Point of purchase: As a customer is purchasing your products or service, you can appreciate them for patronizing you, and request that they refer another person who would be interested in a similar product or service. You can collect the persons contact immediately and follow up.


  1. Gift back for feedback: you can follow up with your customer after a few days of purchase via email or phone and as they give you their feedback (hopefully positive), you can give them a free gift voucher for themselves and a friend that can be used on their next purchase. You can restrict the voucher usage to one person per voucher to avoid abuse.


  1. Bring someone discount: You can offer your customer a discount on their next purchase as long as they bring someone who actually makes a purchase also. Another variation of this could be a group discount.


  1. Commission for referral: you can create a certain amount as commission to be paid to your customer or put on their tab every time they refer someone. The person could mention their reference code at the point of purchase to make it valid for them to claim the commission. With this method especially, customers would work hard for you if the commission is substantial.


If you implement this system properly and make it a core part of your sales cycle, you would increase your sales and get your customers working for you. I would really like to hear your feedback on which of this worked for you.


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