Referrals for Commission

Referrals for Commission

Referrals for Commissions:

One online business model that is growing in popularity is getting referrals for commission. This business model type is where you either create a website and use SEO techniques to make the client show up on the first 3 pages of Google, or buy using advertising to drive traffic to their site, or for local businesses which are brick and mortar, sending people to their business. Then said business will pay you a finders fee for each new client they set up as a direct result of your campaign.


The basic framework of getting referrals for commission is dependent upon the business model you are trying to build. If, for example, you are wanting to be a marketing agent, then you may contract directly with local businesses on a contract basis, to be paid a monthly fee for your services dependent on how many new customers they receive. This is different than having a set monthly fee. A set monthly fee pays you the same, regardless of the number of new clients that your efforts bring in. Your income is then set upon a scale of clients you have rather than the number of customers you bring to them.

Being paid on a per customer basis for referrals for commission can be a more focused action. Meaning, instead of having to create thousands of websites for thousands of clients, and marketing for that same thousand, you can have a smaller clientele, that you can generate the same income that a monthly fee can net you. There are pro’s and con’s to each endeavor, but this article will focus on referrals for commission. This is also commonly called a “finders fee”.

The Good and the Bad of Referrals for Commissions.

The advantage of this to your client is that they don’t have to pay you, unless you deliver. The risk however, is that if you don’t deliver a new customer for your client, you don’t get paid. There is also, the issue with doing too good of a job and overwhelm your client and they can’t keep up. For example, if your client is a dentist, he can only see so many people at a time. To combat this, you need a few dentists that you represent, and make sure you keep the communication between you and your client active, so you can best meet their needs. The other thing is doing your research.

Knowing how much revenue a customer can bring to your client, can help you decide on how much to charge per referral. Some companies already have a set amount that they offer. Also, look into who you will be representing. If your prospect has a horrible track record with bad service and has a failing business because they are bad at what they do, you don’t want to put yourself at risk. Take time to get to know your clients. Don’t just go chasing money, or it will eventually come back to haunt you. That said, helping good companies with poor marketing skills, can land you a lot of money.

SEO and referrals for commission:

What is SEO? Well is stands for Search Engine Optimization. I am not an SEO guru, but there are lots of them out there that offer (for a fee of course) courses on all the tricks to get your customers on the first three pages of Google, Yahoo, and Bing. This service is for those who are building websites to drive traffic, which results in people going to see them or visit,etc. SEO marketing can be used for many business models, and will be gone over more in depth in later posts.

Paid Ad driven traffic:

Another approach is to use focused audience paid advertising. Using this method for getting referrals for commission is using tools such as Google’s AdWords or Social Media to target people within a certain demographic. Negotiate with the client an initial coupon or special deal to make the first purchase / service enticing. Then it becomes your clients responsibility to retain that client. You met your obligation. Which is why, it is important to make sure the product or service is what they claim to be.

Be Creative:

There are lots of methods for getting referrals for commission. With a little imagination, you can even do it super low budget and low tech. If you are representing a local company, you could do flyers, talk about it with your fiends on social media to help promote the business. You can pay a small amount of money for mailers. Let your creative side flow. The only wrong way is of course illegal actions. Yeah…Don’t do that.

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