That thought has never made any sense to me either. I always think it’s funny whenever a company charges me full price but the tells me they will give my friend a discount if I refer someone to them. It makes very little sense to me. If anything, I need to be rewarded for sending them new business, or else I have no real incentive to do so again.
Referrals are a major part of every small business, and it always seemed like the best solution would be to offer an incentive to your existing clients to bring you new customers, which of course, allows you to charge full price to both customers. This is exactly why we made Smartr Marketing.
Although most businesses are in fact willing to share a percentage of a sale with a person referring clientele, without any way to track the people you are referring or the money being made, it is all hearsay. As Kenneth Young, one of my partners told me, we are all already “smartr marketing,” we just haven’t been getting paid for it, yet.
Our active affiliate software gives customers a way to track both who they have referred to a company, as well as how much they have made for referring those new clients, while giving the business owner a tool that allows their own customers to become their greatest brand ambassadors and sales people. It’s a win-win in my book.
Don’t give discounts to new customers. Give money to old customers for sending you new business. Easy peasy. And you will be in business longer, I assure you.