This is a really interesting post on how to get more business.
For years I’ve been asked if JibberJobber has an affiliate program (aka, a referral fee for people who refer JibberJobber to their network). The answer is NO. While affiliate programs were very popular five to ten years ago.
I started with an affiliate program but found it was just not appropriate for our model. One reason is that most people who asked would refer less than 50 people a year, and the percentage that would actually signup, use it, and then upgrade (for $9.95/month) was very low. It wasn’t worth it for anyone.
Kent is a professional service provider (executive coach). If I refer one person to him, that could be worth hundreds and easily thousands. There is a lot more money to share in that scenario.
But Kent’s post, Why I don’t want a referral fee, goes to another level.
Let’s say you give me a referral and I give you $100. How was that? Are you fulfilled?
If you are giving a referral so you can increase your income, $100 isn’t very much. If you consistently get $100 a day that is interesting, but if you get $100 a year, it is barely fun money.
Kent’s blog post starts out “My business is built on referrals.” Why, then, doesn’t he pay for referrals?
Another line says: “a (referral) fee would deter me from giving referrals to you.”
Read his post to find out what’s more valuable than a referral fee.