Referral program.

[carrbowl]

Need to start this...yes I'm aware I'm behind the 8 ball!! can't do it all at once at the beginning!!! So cut me some slack!!!

So I want to offer clients something for referring friends. So from what I can see $25 is the usual rate. If I take Jane's pics. She refers Joe. After Joe pays his session fee, Jane gets her $25. Do I have this correct?

Do I need to limit the number of referrals one person can have? I'm thinking no, but just checking!!! Do I need to give Joe anything?? What else do I need to be aware of before I jump into this???

carrbowl added 857 Minutes and 21 Seconds later...Double Post Merged Below

What?? Doesn't anyone do referrals?? Surely some of you guys do them???

[photopam]

I have been toying with this idea myself for quite sometime.
My thinking is a free 8x10 on their next session to the referrer. Maybe a free 5x7 to the referee.

I have met a high end photog. that gives away "gift certificates" from the client to give to their friends, the amount of which is good enough for a free sitting and 8x10. They can give away as many as they like. In return for a paid referral, they get the same deal, or the amount will be given to a charity of their choice. Keep in mind these are HIGH END clients. I am still working on how I can apply a similar thinking to my business...

[Steelsun]

Some people in the biz (and many other service ones) do the referral on a % basis of the initial income. My consulting / business services biz pays referrals/commissions as a % of the initial billing. Depending on the circumstances, they may also get a smaller % of follow up billing from the same client.

Some give the referrer "store credit."

Personally I would do the "store credit" route as a photographer, as it saves hassles on any tax implications, creates additional possible income (they may order more than the credit), and is actually a savings (a $50 credit might only cost you $5 in merchandise, you 'save' $45).

[CaptainTom]

I opt for the "here's a gift certificate worth $$$$ for any service offered by my studio" this certificate is good upon presentation and is not redeemable for cash.

This gives the recipient the chance to use it themselves or give it to someone else.
It establishes how much value you place on a referral.
Your end cost is only the cost of whatever they choose. It could be a print, a sitting fee, etc.

[carrbowl]

So if Joe refers Jane...would you give them both a print. I intend to give them prints not cash. And would you recommend the same gift.

Sometimes I wonder if I think through this too much???

Here is what I'm worried about. Joe refers Jane. I want Joe to order his photos within two weeks and not drag out his photo order. Jane hears from Joe about me and calls me a month later and books two weeks after that. If Joe is hoping to get some prints for referrals, he is going to wait and order prints from his referrals. That's not really what I'm hoping for!!! Is there any way around this, or this is just the nature of the beast and I shouldn't worry about it, because I'm getting another customer, so don't worry about the print order? see...I'm thinking too hard!!!