Imagine that you needed to generate £2,000 each month in sales of a specific product or service.
And that product or service was priced at £250.
To hit your £2,000 monthly target, you would need to sell eight of your £250 priced product/service.
Eight isn’t a lot, but £250 isn’t pocket money to most people so the amount of people willing to buy may be small.
In order to sell your product to people, you will need to spend some money on advertising which not only adds to the cost, but you are reaching out to people who do not know or trust you.
Advertising can be quite a costly affair. Especially if no one is buying your product or service, you are basically paying out for nothing.
But there is another way…
An incredibly simple way which many people say is better than paying out for advertising…
I touched upon it briefly in the previous article where I talked about the six degrees of separation…
And it is…
Paid Referrals
Paid referrals are a great way to find clients and customers because you create a network of sales people who actively promote your products and services for you in exchange for some extra money.
Your referral commission needs to be decent though otherwise people won’t be interested.
So going back to the £250 product or service example where you need to sell eight to hit your target of £2,000 in a month.
If you paid £50 to anyone who passed paying clients and customers your way, it’s possible that you would end up with more clients and customers each month than if you tried to find them yourself.
Yes, you will need to pay out £400 to those who send you the eight new clients and customers meaning that you are £400 short of your £2,000 target, but that should be okay because you actually ended up with more clients or customers.
Let’s say that instead of eight clients or customers you were averaging eleven a month… that would cover your target, the cost of paying for the referrals and give you some extra profit.
Depending on what your product or service was the only concern you’d have would be whether you could handle more than the eight you need each month.
If you can’t, then you might want to consider increasing your price to accommodate.
Even if one month you did only get eight referrals meaning that you paid out £400 in commissions and was left with just £1,600… £400 short of your £2,000 monthly target, that is a lot better than only attracting four paying clients a month through paid advertising.
You’ll still be left with more money and be in a healthier position.
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Unlike paid advertising, you do not pay out until you have a paying client or customer.
You are not paying for leads… although you can do that… you pay only when someone has bought your product or service.
Paying for referrals is a powerful way to turn your friends, family, connections and past customers into a network of sales people who send people your way.
People always need money and this is a great way for them to make it.
They are rewarded by introducing new paying customers to you.
Imagine that you bought our One Letter From Retirement course on writing sales letters and you started to make connections online with people who create digital products.
Not only could you offer your sales letter writing services to them, you could also offer them £50 – £100 for every person that they send your way that pays you £500+ to write a simple sales letter.
Who wouldn’t want to earn an extra £50 or £100 just for simply introducing people to you?
Everyone is a winner!
You win because you get new paying clients and/or customers…
The referrer wins because they make money for simply saying ‘hey John, this is Veronica, and she needs XYZ, I’ll leave her in your capable hands’.
And the client or customer wins because they get the thing then need or want from you.
As I mentioned earlier, you can also do this for generating leads.
Leads are ‘potential’ customers and not actual customers so with that in mind you wouldn’t want to pay a lot of money for people who may or may not buy.
You could pay £1 or £2 per person who is sent your way, so for the referrer to earn a decent amount they will need to send you quite a lot of people your way.
This is perfect if they have a lot of connections such as a large online following, but not so good for your friend down the road.
Whatever it is that you sell or do, offering referrals to people you know could be a great way to find new clients and customers without the extra cost and headache of using paid advertising.
Kind Regards
John Harrison
PS… What you are reading is a piece of written content. The kind of content people would pay hundreds of pounds for. Whether it is a sales letter or a sales email, people will pay good money for other people to do it for them. If this interests you, check out our sales letter writing course – which is also perfect for writing emails – here: