Kent Blumberg: Why I don’t want a referral fee

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.





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