This strategy rewards “affiliates” – who can be customers, suppliers, influencers etc. – for each referral or sale they make for your company. The reward can be discounted or free products, gift cards, cash or any other form of value.
A formal approach is better
You can do this informally but it becomes hard to track who referred who, what payouts you owe, how your affiliates will be paid etc. This is why it’s a good idea to use software, and there are many. That way, each affiliate gets their own link and/or code that they can use to refer business and everything is tracked automatically.
Products and Services
It works for both service and product businesses and may take some testing and promotion to get right. Many people limit the affiliates to current or past customers to avoid their business name and links being plastered everywhere and coming off as “scammy”.
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- Ease: Doable
- Cost: $100+
- Scope: Medium
- Speed: Normal
- Reach: City