Thinking of rewarding customers who send you work? Find out how much you can afford to give, based on what a referred customer is actually worth to you over time.
A referred customer arrives already trusting you, so they cost far less to win than one from an advert. Work out the profit you make from them over the jobs you expect, and that tells you how much a referral bonus can be before it stops paying. A sensible rule is to keep a bonus to around a quarter of that profit.
Your usual job, and how much work they are likely to bring you.
What you would hand over for each referral that becomes a job.
A guide, not financial advice. Figures are estimates based on the numbers you enter. Check what rewards are allowed where you operate.
Someone who comes to you on a recommendation has already been sold. They trust you before the first call, they are less likely to haggle, and they tend to be easier to deal with. Compare that with a customer from an advert, who you have paid to find and then still had to convince.
Most people refer you because you did good work, not because of a reward. A small thank-you simply makes it more likely they remember to mention you, and shows you noticed. It does not need to be big to work.
The break-even bonus is the most you could ever pay before you make nothing. You never want to be near it. Keeping a bonus to roughly a quarter of the profit leaves you with most of the money and the customer, and a bonus paid only when a referral turns into a job means you never pay for nothing.
