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eMarketing InformationShould You Offer Commissions For Client Referrals?
by:
Debbie LaChusa
As a small business owner you may find yourself in a situation wherever
you want to partner with another business but they are asking for a commission on your services. You wish want to be prepared to handle such a request BEFORE you find yourself in this situation.
Whenever person asks you for a commission in exchange for marketing your product or service, it is fundamentally an affiliate or referral program. This can be one of the most powerful forms of marketing because it promotes word-of-mouth marketing. Who better to refer clients or customers to you than person who fully understands the value of the services you have to offer?
Often these folk are your current satisfied customers, or as is the case with this question, they may be strategic partners. Strategic partners are those individuals or businesses who agree to refer business to you, sometimes in exchange for you doing the same for them, or possibly for a commission. Either way, it is important to do sure it is a win-win situation for several sides.
If you consider these individuals or businesses are in effect doing your marketing for you, then you realize paying a referral incentive or commission is simply a marketing expense.
When you consider that referred customers are "warm leads" and are a lot much likely to purchase from you than a "cold" prospect because they move with an endorsement from person they trust, then you see even as much how valuable this referral marketing can be.
My suggestion is to approach this as a potential business partnership. Do sure they wholly understand the benefits you can provide to their customers and let them cognize you would-be like to design a reciprocally
beneficial partnership. Before you offer to pay them a commission, find out what is important to them.
What are they looking for that you can possibly help them to get? In this case the potential partner IS your target audience so cognize them and approach them with a relevant proposition. Be willing to pay a referral fee or commission if that is all they are interested in, but besides be open to another ideas.
I have negotiated several amazing partnerships simply by disbursement several time talking and group action
with potential partners. In another cases I have straight affiliate/commission partnerships. It all depends on the partner and how we determine we can Better HELP EACH Another to be successful.
(C) 2005 Debbie LaChusa
Just simply about the author:
20-year marketing veteran Debbie LaChusa created The 10stepmarketing System to help small business owners with success
market their business, themselves without disbursement a fortune on marketing. To discover much simply about this simple, step-by-step program and to sign up for her FREE audio class and FREE weekly ezine featuring how-to articles, tips and advice, visit http://www.10stepmarketing.com
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