Referral Programs

So I’ve been debating referral programs fora number of different projects. I see businesses use them with great success but I haven’t implemented one before. 

For 45Squared, my web development company, I have no sales team besides myself. I rely solely on word of mouth right now. I’ve been mulling around the idea of doing a $50 referral program for any new customer that someone brings in. But, how do I control it? 

Last night I decided to do a trial run with only my close friends to see if they can bring in some people. In my friend group, we have quite an extensive reach so it could be successful. At $50 per referral, my margin is still large enough especially when I can sell hosting.


For my other business, there are too many people involved to implement a successful program. I find that most people, to complicate things with aggressive equations to calculate a percentage of a deal that the referrer will receive.

Ultimately I think that this takes away from the program and makes it unsuccessful. But, I have no experience with it, yet. 

So what are your thoughts on referral programs? Comment below.

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