Thought: Discount For Referrals? Good/bad Idea?

Business By Tinabarena Updated 24 Aug 2010 , 8:25pm by Yum2010

Tinabarena Posted 24 Aug 2010 , 2:23am
post #1 of 8

So, I've been thinking about how to get some more business and one of the thoughts I had was to provide a discount to a client who referred me to somone else (and obvioulsy purchased a cake or cupcakes).

Has anyone does this? If so, how did it work - did you get a good response? What sort of discount did you give? 10% off the next order? $5 off?

I want to branch out, but I also don't want to sell out, you know? I appreciate those who have supported me, and are fans of my webpage - but I also don't want to 'hound' them.

Is there every a time where marketing can go too far?

TIA

7 replies
Tinabarena Posted 24 Aug 2010 , 2:25am
post #2 of 8

wow...note to self - reread posts before hitting the 'submit' button...sorry for the spelling errors!

leily Posted 24 Aug 2010 , 5:26am
post #3 of 8

Yes i have seen others mention they do this. Indydebi has posted how she used to do it, i'm sure she'll pop in and fill you in.

Tinabarena Posted 24 Aug 2010 , 12:07pm
post #4 of 8

Thanks! I would like Indydebi to be my mentor...is that allowed? LOL...she's so good and I always look at her responses. (highest of complements to you Indydebi if you see this message!)

I tried the search engine, but the search engine never really works for me-I'm still trying to work my way through this website. I'll try it again and see if I can find something by being more specific.

Thanks again!

indydebi Posted 24 Aug 2010 , 4:17pm
post #5 of 8

Yes, I have been giving referral credits for 30 years. It turns every single one of your customers into a salesman for your business.

Simple process: Alice sends Betty to me. Betty spends $400 on a cake. Alice earns 5% or $20 toward her own cake. Since I did catering, it REALLY was an incentive to them. If Betty bought a $3000 catering package, Alice earned $150 toward her cake/catering.

one bride sent me 3 friends and she earned a free wedding cake. She sent me $9000 in business, so you bet your butt I did her wedding cake for free!!

I had no complicated system for keeping track. It was practically an honor system. I'd send Alice an email telling her how much she'd earned and when she was ready to order, she'd just tell me "I have $20 in credit with you." I kept tracked of used credits just by applying them to their invoice and if there was ever a question, I could look up old invoices. But that never became an issue.

sari66 Posted 24 Aug 2010 , 8:03pm
post #6 of 8

I started doing a referral discount because of Indydebi icon_smile.gif In a new place it's been really popular.
Thanks Debi

Tinabarena Posted 24 Aug 2010 , 8:12pm
post #7 of 8

I think I'm going to try it! It can't hurt anything, so why not??

Thanks for your responses!

Yum2010 Posted 24 Aug 2010 , 8:25pm
post #8 of 8

Referral credits are wonderful! They work really well!

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