The simplest partnership.
WHAT IT IS
One party introduces customers to the other, for a fee or reciprocally.
WHY IT WORKS WELL
Low commitment, low risk and clear benefit on both sides.
WHO REFERRALS COME FROM
Businesses serving the same customers differently Professionals whose clients need what you offer Suppliers and contractors Competitors who cannot take certain work
WHY COMPETITORS DESERVE MENTION
Work outside someone's capacity or specialism is referred constantly.
WHAT TO ESTABLISH
What constitutes a referral What triggers any payment How it is tracked What is disclosed to the customer
WHY DISCLOSURE
Undisclosed referral fees damage trust when discovered, and in some sectors they must be disclosed.
WHAT TO ESTABLISH
Whether disclosure is required in your field.
WHAT TO PREFER
Disclosing, regardless.
WHY
It costs little and it removes the risk entirely.
WHAT TO ESTABLISH ABOUT TRACKING
How a referral is identified.
WHY
Disputes about whether a customer was referred are common.
WHAT TO USE
A notification at the time of referral, recorded.
WHAT TO ESTABLISH ABOUT QUALITY
That you will serve referred customers well.
WHY
A poor experience reflects on the referrer, and they stop.
WHAT TO PROVIDE THE REFERRER
Feedback on what happened.
WHY
They took a risk with their own relationship.
WHAT MAINTAINS REFERRAL RELATIONSHIPS
Reciprocity where possible Prompt payment where applicable Serving referrals well Staying in contact
WHAT ENDS THEM
Poor service to a referred customer Slow or disputed payment Approaching the referrer's own customers
