How Much is a Referral Worth to your Business?

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vizvek

New member
I was talking to a detailer who works in the UK and he told me about a company that provides referrals to detailers in his area. They pay a monthly fee, I think somewhere around $100 - $250 per month. The company sends him on average 5-10 jobs per month (he says he makes about $300 - $500 from their leads). He's happy with the deal because he makes his money back, plus some, in many cases.



Has anyone here paid for leads/referrals like this on a monthly basis? I know some detailers may pay a percentage to someone on a per lead basis. But, has anyone paid any flat rate amount, if so, what is a fair amount to pay for something like this (assuming you will get the money you put in back)?
 
I don't pay for leads, but I frequently give or get paid a "bird dog" fee for referrals. It's only fair & respectable.
 
I am not in the pro detailing business, but I am a business owner. In my experience buying into those lead referral agencies is asking for not only headaches but disappointment as well.



Often times they aren't hard leads. They are whats called a soft lead. Meaning, the person may have answered a question on a survey saying they could use (service name) or have thought about using (service). Or they simply entered a certain keyword on a site that the referral company uses or buys lists from. So you are basically ending up just a half step ahead of opening the phone book and cold calling, or beating the street.



I have heard from a few people that it worked out for, but they are few and far between. YMMV.
 
gimmeAlighter said:
Often times they aren't hard leads. They are whats called a soft lead. Meaning, the person may have answered a question on a survey saying they could use (service name) or have thought about using (service). Or they simply entered a certain keyword on a site that the referral company uses or buys lists from. So you are basically ending up just a half step ahead of opening the phone book and cold calling, or beating the street.
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That's what I thought when I initially spoke to him about it. I figured it was some form of online lead generation. But, I found out that basically more "funneling" or maybe subcontracting is a better word for it. I guess this company is pretty large and get inundated with business, so they pass these jobs to detailers in their network.
 
All my business is referrals. I let my customers to the marketing for me! I always ask the callers how they get my number, the customers who refer them usually get discounted service or some get free service! One of my best customers continues to send me 10-20 referrals a year for heavy correction, after 12 years he still continues to visit me and I have not charged him for much at all. I would rather do more quality work than quantity. I only do this on the side but I still put in full time hours doing it! LOL If it keeps up the way it's been the last 3 years I will be quitting my regular job soon!
 
maxepr1 said:
All my business is referrals. I let my customers to the marketing for me! I always ask the callers how they get my number, the customers who refer them usually get discounted service or some get free service! One of my best customers continues to send me 10-20 referrals a year for heavy correction, after 12 years he still continues to visit me and I have not charged him for much at all. I would rather do more quality work than quantity. I only do this on the side but I still put in full time hours doing it! LOL If it keeps up the way it's been the last 3 years I will be quitting my regular job soon!
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Agreed! :)
 
I used to offer $20 to customers who referred me to new clients. Now I simply send them a thank you either by phone/email. I decided that my hard work/effort is why they referred me and that I should not feel obliged to pay out for being so good at my gig.



Now, if you're talking about a dedicated marketing team who is virtually pounding the street to build you clientele, then of course you should be paying something (commission would be most beneficial to both parties).
 
I think asking clients to refer you is the best and cheapest way. I always hand them a few extra cards and ask them to hand them out to anyone that might be interested. I ask them on follow up washes too. I dont like washing, but right now i take every chance i get to be seen detailing. I also created a new card that I hand out only at places I detail. That way they know Im detailing someones car in the neighborhood.
 
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