IS THE CUSTOMERS YOUR NEW SALESPERSON?

May 5, 2021

Something peculiar has been happening over the last few years, while it is not a new concept it has peaked during the time of COVID. I am referring to the rise of the referral partner program, or in other words the client-based salesforce.

Before I continue, I need to make clear that I am referring to companies that target directly the consumer, not B2B companies that have specific partner programs providing additional tools and resources.

Odds are that if you dig deep enough into any website in today’s market you will find a referral page, promo or program. These come in a variety of forms and flavours, ranging from a discount model applicable towards a future purchase, (Harvey Nichols I am looking at you) to cold hard cash (like Flodesk).

Referral Marketing Programs

Companies have always found referral marketing a powerful tool to create a more symbiotic relationship with the customer.

Not all partner programs have been created equally.

Some companies give their referral partners a percentage of all fees collected by their referred customers.

When cash is involved, some people might market their referral link with more enthusiasm than otherwise merited.

This strategy does not exist without any risk.

Now if I am being straightforward about receiving monetary compensation for a recommendation will that diminish my recommendation?

Now on the other side if I use a service or site which I enjoy and would recommend anyway, should I decline these programs to remain “impartial”? Why should I leave money on the table?

Like most things in life the answer is not binary, there is no right or wrong way to do this and I suspect we are far from seeing the end, or even the peak of these promotions. Ultimately referral programs are cheaper and less risky and much less complicated than hiring new sales staff, which now is slowly becoming an endangered species.