Do you need to reward someone for passing you a referral?
There are several trains of thought on the subject. Some feel that a small gift is appropriate, based on the importance or profit made as a result of the referral. Some think that rewards are not needed as we are members of a referral group in which all are trying to help each other.
Which every train you are on is your choice.
There are a few things you should consider if you intend to reward people for referrals.
1. Do not make it part of your presentation ‘of course we offer a reward of X for every referral passed”. This can have many results including the fact that some people can see you as trying to buy referrals. Also, it makes those that don’t reward referrals with a gift wonder if they should be doing so. Soon the meeting is filled with everyone competing to get people to refer them for the reward, rather than just the satisfaction of having helped a fellow member.
2. Do not give the gift to the person in the meeting in the referrals and raps section, again this can have more negative outcomes than positive.
We are members of this group so that we can help each other and our contacts by passing trusted referrals between each other.
Rather than a gift, give a heartfelt testimonial about receiving the referral and express your gratitude in the meeting verbally. Showing you are grateful, no matter how successful you are as a company, shows the other members of the group that you appreciate the effort of the referral and will look after any other referred business equally as well.