Do you pay for referrals?

[Flea77]

I was tossing around the idea of a paid referral program and started wondering if any of you have tried it or currently use it? How has it worked for you? What do you normally pay?

I mainly service small communities so I was thinking about this for a referral structure:

$10 for each paid portrait session
$15 for each paid wedding as a second
$20 for each paid commercial shoot
$25 for each paid wedding as primary

What do you all think?

Allan

[bondarnes]

Are you talking about cash or studio credit towards future purchases?

[Kalrog]

I usually toss the person who did the referral a free 8x10 (or 2 5x7s or 2 sheets of wallets, etc). Everybody wins and I'm not out much as my cost of goods is much less than your "session fee" discount.

[Flea77]

I was actually thinking about cash. My reasoning is that not everyone may get excited about studio credit if they are already a customer (my plan was to introduce this to new customers as a way to entice them into getting their friends to come in, so the person doing the referral has already had what they want done, done), but everyone likes cash. I also want to stress that the cash would only be paid when the referred customer pays in full, so I am not out of pocket for referrals that do not pan out.

Allan

[Tom]

I wouldn't pay for a lead. I would give a session or a print for a booking.

I think people might scoff at $5 or $25 for a referral - especially if you are booking a couple grand out of it.

[carrbowl]

I have referral cards. $25 to each person (the handing out the card, and the one giving me the card) $25 is for a credit..either session fee or print credit.

[lyncca]

I was doing it, but I found for me it didn't make a difference. My clients rave about their pics and me and tell everyone they know anyway. I think with senior reps it could make a real difference (I haven't had a ton of seniors yet), but otherwise most people bought their disks and didn't really care if I gave them an 8x10.

[HotHolly]

The amount is too small, so unless you're a poor college kid whos sick of eating Ramen noodles, I dont think too many other folks will care.

If you want to generate WOM, pick people and give them reason to rave about you. My best contact has been my hair dresser. She's sent me $1,000s in business. And her and I have a barter going on - she cuts my hair for free and I give her a session for free. There are other vendors/ point of contact people who are in business and just talk all day. Those are your golden people. They know everyone.

[mkweaver]

I am inclined to agree with not giving credit toward a print. They may remember that and order low, expecting to get it with referrals. Referrals are good, but orders and referrals are better.
Instead of cash, we offer a gift certificate to a nice restaurant. Our clients love it, and work hard to get them.

[J Eddington]

Never in cash always in gifts. Whether a studio credit or if a really big referral a gift delivered to there home. The gift depends upon lots of things and knowing my clients.

[luithbert]

I am also in the process of starting a referral program. I am planning on issuing a $50 credit to my referrer per client referred. This credit will be used for future sessions and/or prints of past/future sessions. At the moment, I am not planning on issuing a credit to the referred person. I believe it is really important to issue credit for future services of your business in order to keep money coming in. I am undecided if the credit will be transferable in the case the customer wants to do so, what do you guys think?