Referral Marketing

Word of mouth and referrals can be the strongest way to market your business. Boosting your referral business takes plenty of customer recognition, incentives and superior service.

The Benefits Of Referral Marketing Are:

Referral-generated customers are the least expensive, most profitable, and loyal source of new business.

  • Referral-generated customers also tend to buy quicker, negotiate less, buy larger quantities, and refer more business to you.
  • Your referral systems increase the results generated from all of your marketing tactics by getting others to spread the word about your company and your products.

Referral Campaign Ideas


There are several approaches you can take to building a referral campaign. One way is to launch a refer-a-friend promotion. Your company will offer an incentive to your existing customer if they refer a new customer to your business. Typically, businesses will offer a small cash reward. Sometimes companies will include an incentive for the new customer too, which helps to sweeten the deal.

Another referral-type campaign is a testimonial promotion. Testimonials are extremely effective for bringing in new business because they promote how the business has helped an actual customer. The customer is typically interviewed by the company about why they do business with the company and how the company has helped them.  The testimonial can be used in several ways, including in newspaper ads, in-office merchandising, and in radio spots.

Referrals are powerful when they come from your employees. If you are promoting a special product or service, you can offer incentives whenever your employees cross-sell the specific item. Small cash rewards work well and so does paid time off. You can structure the program to be cumulative where the employee earns a reward for earning a certain number of referrals or you can pay per referral.

Track your referrals

In order to determine whether your referral program is successful, you must track its progress. One way is to ask the person making the referral to write her name on a referral slip. In some cases, businesses will create special referral coupon slips that customers can put their name on and give to their friends and family members.

You can track a testimonial campaign by asking customers how they heard about your business or product. Additionally, some businesses like to do joint marketing with their testimonial customer, and directly promote their customer’s business along with the testimonial. You can ask your testimonial customer to track sales based on your campaign and compare any increase.


Karmen A. Booker is an Attorney, Business Consultant and Chief Consultant for Compu-Perfect Professional Services, a business consulting firm specializing in business incorporation, establishing limited liability companies, contract drafting & reviewing, and more.  CALL ATTORNEY BOOKER at (301) 408-1082. View her website at

Attorney Booker is also an author of  “Biblical Entrepreneurship” solves the problem of “not knowing how to start a business”. It is a comprehensive guide for starting and operating an efficient business. It discusses the 7-step process for operating your business GOD’S WAY:

*    Step 1 – How to Obtain a Vision for Your Business

*    Step 2 – How to Hear From God

*    Step 3 – How to Overcome Obstacles – the Fear of Failure and the Fear of Rejection

*    Step 4 – The Different Types of Business Entities and Selecting the Best One for Your Business

*    Step 5 – How to Develop a Business Plan

*    Step 6 –  How to Select a Name for Your Business and Other Business Essentials

*    Step 7 – Tax Tips for Your Home Business


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