Questions about a Referral Program

[cry...@notch8.com]

Our team recently received a referral from a contact who asked if we had any sort of referral program.  Typically our referrals come in from other developers and we tend to operate on a quid pro quo basis where we send work to them as well and it comes out even over time.  But in this case the individual is not someone we can send work to.  Is there an industry standard for a referral program?  Is anyone else using any incentives for referrals?  If so, did a percentage of the total work better or a set dollar value?  Any advice would be appreciated.  

[John Wilger]

Seems like maybe the industry standard you are looking for is "sales commissions", unless I'm misunderstanding your meaning.

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Regards, 

John Wilger

On Sep 28, 2015, at 4:55 PM, cry...@notch8.com wrote:

Our team recently received a referral from a contact who asked if we had any sort of referral program.  Typically our referrals come in from other developers and we tend to operate on a quid pro quo basis where we send work to them as well and it comes out even over time.  But in this case the individual is not someone we can send work to.  Is there an industry standard for a referral program?  Is anyone else using any incentives for referrals?  If so, did a percentage of the total work better or a set dollar value?  Any advice would be appreciated.  

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[Phillip Kerman]

I'm a self employed contractor so it already sounds different than your case. But while it's certainly not my business focus, in the occasions where it made sense I've always just worked out a one time "finder's fee". If I were trying to change my focus to concentrate on this I'd probably have something more formal.

I  like to bring work to businesses with whom I work as it often pays like you mentioned. I'd someone pays me a finder's fee I often try to think  up a way to do it again or repeatedly or to propose a new price for additional finds... But it's usually rare that it even comes up for me. Finding complementary businesses with whom you can work can work out for all involved.  Of course you'll want consider if it puts you in questionable credibility range,  especially if you refer someone you don't know well.

Thanks,
Phillip

On Sep 28, 2015 5:31 PM, <cry...@notch8.com> wrote:

Our team recently received a referral from a contact who asked if we had any sort of referral program.  Typically our referrals come in from other developers and we tend to operate on a quid pro quo basis where we send work to them as well and it comes out even over time.  But in this case the individual is not someone we can send work to.  Is there an industry standard for a referral program?  Is anyone else using any incentives for referrals?  If so, did a percentage of the total work better or a set dollar value?  Any advice would be appreciated.  

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[Chuck Vose]

The most I've ever received was a gift card to a nice restaurant, but that didn't do much to keep me sending work their way.

As someone who is on the other side of your equation, I am usually concerned first with whether the contract is being well cared for, then second that I'm getting something out of it.

My point is only that if there's an industry standard, it is unknown to me. Perhaps the best thing would be to ask the referrer what would make them more likely to help find more work for you and run with that. :)

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