Scam or not???

P

pommer2005

New member
Alright, here is where I am at, I am starting out and after posting flyers everywhere and giving away free washes and such at community celebrations, I still have some customers but I’d like some more…so one night when I couldn’t sleep I thought of this. Say I detail someone’s car for $100, and then for every car that they bring me that I detail they get $5 back….so if they bring me 20 cars they get there detail for free and I will end up making $1,900….so here are my questions…

1) Have any of you tried something like that before??
2) Is it ethical??
3) Is it legal??
4) Could it be considered a pyramid scam??
 
This is referred to as a "Bird Dog" fee. Mostly used in the car business. Some states have laws against it. I live in NC, and I believe the state has a law against it however, I see stores all of the time with big signs inside promoting their program. I have never heard of anyone getting busted. I don't believe there is any way it could be construed as a pyramid scheme.
 
It would be easier to just use a punch card or something. Kind of like how Subway gives you stamps that you can return for a free sandwich after so many stamps. I've found that it is really hard to keep track of referals unless you print up cards with the customer's name on them and then sign them. For every card that someone else returns to you, you keep track of the customer who gave them the card. Its a pretty complicated system of tracking customers, but it can work if come up with a good enough system. I don't think its unethical at all. Its smart business.
 
I started out much like you I asked 7 customers at the new car dealership where I was working at the time if they would be interested in having there car cleaned.....16 years later I am as busy as I want to be as I do this as a "moonlight" operation. I think if you give yourself a little time you will be ok. A satisfied customer will be your best advertisement. I did a car for a little old lady who played cards man did the phone ring
 
I offer a free car wash to the customers that I do full details on if they send me new biz. All I ask is that they mention where they got my name from. Its up to the customer to get the fre car wash this has worked quite well.
 
A referal program sounds like good business. I like The Fuzz's idea of punching holes in a card like subway. This way you don't give them money directly but towards detailing. This is a cool way to keep the interest up.
 
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