Referral Bonus ideas for existing customers

[BDR]

Hello!

My largest client lives in an area that has tremendous potential for my small business and I am ready to begin a marketing campaign in that area but have a few questions on a referral bonus plan for this customer. I have two thoughts at first, Is it legal for me to offer a "kick back" to the company as a whole or to officers (specifically the GM) in return for leads or referrals that turn into accounts in the future? Second thought: I am concerned about entering into talks with this client about a kick back or referral bonus program because of the thought that it might damage the relationship that we have? IF it is a good idea (or is legal at all) How would I structure it? Percentage based? One time cash bonus? Should it be based on leads that actually turn into accounts or on only the referral alone? I know thats alot of questions... sorry. Any help is welcomed.

Thanks

[vweconsulting]

First and foremost...what industry are you in? So we can help determine the legality of your "kick backs".

[Kumar Palani]

In terms of pure marketing referral bonus should be a great deal and would bring in amazing level of leads. However the legality of it largely depends on your industry (business) and your the state you are living in.

[BDR]

Im in the hospitality laundry business.

[Rob Malone]

Kick backs for referrals is a very tricky thing. In general it is not a good idea and over all it typically doesn't work to good. Read the book "The 7 Levels of Communication" I think his system for getting referrals might work for you. I would especially work the section on the communication plan and get your clients properly assessed. Create a great experience for them - beyond great customer service, find out what they like and surprise them with gifts. For example if one really likes fine wines surprise them with a gift certificate for a really good wine shop. Another good book to read would be "Swimming With the Sharks" If you apply what is in those two books and you have a good product with great customer service you will be getting a lot of referrals in 12 months or so.