Rewarding Referrals–Good & Evil

By Daryl Logullo | September 29, 2007 | Popularity: 7% | 274 views

You're penalizing others. And I set off a slew of controversy about a recent post.

In it, I wrote about rewarding others who refer you business. In fact, I said…

Reward referral-generating behavior

I said it amazes me how many professionals don't reward behavior. Notice I'm saying behavior. The fact is, people involved in sales (yes, referrals are an extension of sales) often want to reward only when the sale is closed.

That's bad. In fact, I say it's evil.

  • You reward a second-grader when he brings home a good report card.
  • You reward an employee who goes the extra-effort with a top client.
  • You reward a cleaning person who is doing an exceptional job with you home.

So why aren't you rewarding behavior from others sending you referrals? Notice I've emphasized the word sending. As-in, action given to you.

You may not close that lead. You may not turn that referral into new business. And that prospect may be unqualified. But you absolutely, MUST reward the person who provided the referral to you… regardless of your ability to close that piece of business.

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