I quite like the idea of initiating one of these for my lovely loyal customers who recommend me to others (and to encourage more people to 'pimp' my business !).
I know some of you already do this, so I wanted to ask how you work it? A set amount for each referral they give you (and how much?), a percentage of the new customers total order (and how much?), another system?
What I've been doing for 25 years is a 5% referral credit.
Alice refers Betty to me. Betty spends $3000 on her reception. Alice earns 5% of the $3000 ($150) to apply to her invoice, or to keep on account toward a future order.
I keep it very informal. All Betty has to do is say "Alice sent me".
I've had co-workers battle it out on which of them gets credit for sending me a bride!
I do not issue checks for these referral credits. They are used toward a purchase only.
I have adopted Indydebi's program. I have 2 different families that use it all the time. They have referred quite a bit of "new" clients to me over the past year. I let them use it collectively. It has worked out very well for me.