Have Your Customers Sell For You!

threaderman

I didn't want to step on the door-to-door sales post so I started this.What works really well for me is I hand select certain customers which I know have large circles of friends and contacts and they become my sales force.I offer them a finders fee for any completed job which was refered by them.I offer 5% of the net of the job.When I first started my business I was leary and didn't want to look desperate offering the finders fee.I have found my customers are very receptive to this and once they experience the quality of work they have no reservations about refering my business to others.Since I do primarily service work the fees I pay out are anywhere from $5 - $50 .Many customers never cash there checks as they are satisfied to steer thier friends in the right direction.My repeat business is about 30% of my income.This is about as low-pressure sales as it gets and I have gotten great responses.The fee is tax deductible as it is considered advertising.For those that feel door-to-door sales are intrusive [as I do],this has proven to be a great tool for me.Just my 2 cents.

Brian

That's an interesting idea.

How do you explain it to your customers?

Brian Phillips

__________________
Houston Interior Painting
Houston Exterior Painting
Houston Painting Contractor

dougchips

Pick up a Joe Girard audio book at your local book store, he explains a system that worked well for him.

__________________
To get the best replacement windows, or sun rooms contact the replacement windows experts at FHI Vinyl Window Company.

threaderman

Brian,I tell them straight out ,you wouldn't recommend me if you thought I would do a bad job anyways ,but really it just keeps me in the loop of good people.I don't give the offer to everybody for there are some I do not want to work for.I tell them from a legal standpoint that it is another form of advertising and quite legal ,but better MARKETING as it targets folks I already deem to be good people and that I like to help.As I said ,it has bein well received.I've found people to get quite excited about the idea of earning some of their money back.The only reason I do this is because I am not a native of this area.I frequently hear,"where are you from"?I don't know a soul in this city but as I stated probably 30% of my business is repeat cust. and referals.Eventually ,I will have a good size client base here as I've had in other cities and I will stop offering this service.

Floordude

Finder/referral fee? I have not done a job yet, where somewhere along the line , or especially when paying the final invoice, they ask for several cards, as someone at work, or their mother-in-law, is looking to get some work done. 95% of my work is referral, from past clients.

My last job, I just finished up on Friday, a wood floor over concrete, was a referral from a client, of mine from 3 years ago.

__________________
**Education is the key to success. Learn more, earn more.**
http://www.AustinFloorguy.com

threaderman

It's just icing on the cake man.

gofrugal

ya, its great idea. Not too many customers you can find like that though.

Ed the Roofer

It is a really good idea, along with a good script designating who gets the offer.

The only error in your ways is, it is not classified as an advertising expense. It is a referral fee, or possibly loosely called a commission. If the persn earns $600.00 or more, you properly should send them a 1099 form. I doubt it would be caught, but just wanted to point that out. Any amounts over $599.99 could also be in their spouses name to avoid going over the benchmark point.

Ed