Our clients are dental clinics and a good new client spends $10k-$20k with us the first year. In this industry, word of mouth is very important for trust. We have personal relationships with each of our clients. There's one client who likes to nag a bit to get a lower price. I offered the client a 10% referral bonus but she said that she would refer us clients anyways without the fee. If we offer the bonus then it's not internally motivated and we feel like they are doing it for the money but not because of our good service and relationship they have with us.
I'd say client referrals are different from resellers. Value Added Resellers are typically partners in adjacent markets that sell your product for a fee (typically 20%).
Client referrals should be free! If you have ever read the book Predictably Irrational, it mentions cases like this; studies have been shown that the intrinsic motivation (helping someone for free and feeling good about it) is a much more powerful motivator than actually getting paid for helping others.
Provided that you have strong relationships with your customers and they like your product, they should want to help you and their friends (helping their friends by telling them about your product!).
Answered 8 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in