Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Lawn Care Marketing & Post your marketing material for review!

Lawn Care Marketing & Post your marketing material for review! Lawn Care Marketing, Advertising, and Public Relations Discussion.

How's this for a referral program?


Lawn Care Marketing & Post your marketing material for review!

Lawn Care Marketing, Advertising, and Public Relations Discussion.
Reply
 
Thread Tools Search this Thread
  #1  
Old 01-30-2010, 03:36 PM
markty markty is offline
Member
 
Join Date: Jan 2010
Location: Bridgewater, Nova Scotia, Canada
Posts: 40
Rep Power: 7
markty is on a distinguished road
Default How's this for a referral program?

Refer one new customer to and receive a 20% discount on your lawn mowing services for the remainder of the calendar year.*

Refer a Second new customer to and receive an additional 20% (40% Total) discount on your lawn care for the remainder of the calendar year.*

Refer a Third new customer to and receive an additional 20% (60% Total) discount for the remainder of the calendar year.*

And so on up to Free Lawn Care

* New referrals must sign up for yearly service. If they cancel the discount is voided.

There may be an easier way to word this.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 01-30-2010, 05:02 PM
SuperiorPower
Guest
 
Posts: n/a
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by markty View Post
Refer one new customer to and receive a 20% discount on your lawn mowing services for the remainder of the calendar year.*

Refer a Second new customer to and receive an additional 20% (40% Total) discount on your lawn care for the remainder of the calendar year.*

Refer a Third new customer to and receive an additional 20% (60% Total) discount for the remainder of the calendar year.*

And so on up to Free Lawn Care

* New referrals must sign up for yearly service. If they cancel the discount is voided.

There may be an easier way to word this.
Personally, I think that is by far too much of a discount. Lets do the math:

Average total yearly contract: $750 (wild guess)

Customer A: Refers 5 new yearly contracts, Customer A1, Customer A2, Customer A3, Customer A4, and Customer A5. Now you have given him $750 out of YOUR pocket. Out of these 6 yearly contracts have a value of $4500 but you are only bring in $3750 for the entire year from these 6 contracts. Now you will have to make a lot of profit from these 5 to get to actually make and true profit.

Customer A1-A5: Lets go out on a limb, all 5 of the referred customers from "Customer A" all bring you 5 customers of their own. You are now cutting 26 yards and only getting paid for 19. You are now giving away $4,500 through out the entire year. Your net income (not net profit) is $15,000 rather than the value of the contracts, $19,500.

Now, lets take a look at your expenses:
Trimmer: $300
Mower: $4500
Blower: $500
Truck: $10,000
Trailer: $1,000
Fuel (for truck, mower, and trimmer): $1000

The above costs are purely a guess and may be way out of line but its a general idea. Sure, all of the equipment should last you several years and you may already have the machines. But consider that that is a LOT OF MOOLAH to give away. I guess I have to ask, are you making more than $150 PROFIT from each customer? If so, how much more? Because essentially, you are paying the referrer $150 per yearly contract. Can you live off the $600 per year net income after you have paid the business related bills?

If you want to do something like that, consider using a smaller % like 5% per contract or 10% per 3 contracts, etc. That would still be $37.50 per referral. I would also make sure that the discount does not carry on for year after year at full value. Truth of the matter is, if you do a good job, your customers will already refer their friends. Another thought is to apply the discounts only to additional work like fall cleanups, mulch jobs, etc. But even then, you need to be cautious of the value of the discount. I would rather go with a $$ amount rather than a %. Example, "Get $25 off your fall cleanup for every yearly lawn service contract you refer, up to a free fall cleanup."

This is just my thoughts, from an outside point of view.

Let us know what you decide,
Eli
Reply With Quote
  #3  
Old 01-30-2010, 05:23 PM
markty markty is offline
Member
 
Join Date: Jan 2010
Location: Bridgewater, Nova Scotia, Canada
Posts: 40
Rep Power: 7
markty is on a distinguished road
Default So what is a referral program that actually WORKS?

Thanks for your reply. Let me qualify by saying that I am a NEW start up. One man show. Small to medium residential lawns. I will not have a truck or a 4500.00 mower to start with, sorry to say. Not everyone can go out and get a ton of gear to start with.

I got this from another lawn care company website located elsewhere in North America. So if that is too much, what is a referral program that works?
Reply With Quote
  #4  
Old 01-30-2010, 10:04 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 38,037
Rep Power: 10
Steve has disabled reputation
Default

Well you could experiment with something simple at first. Each referral will get you a $10 or $20 gift card?

Or something like that.

Try it out, see what kind of response you get. You can always scale it up or down as you need to.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 01-30-2010, 10:28 PM
SuperiorPower
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
Well you could experiment with something simple at first. Each referral will get you a $10 or $20 gift card?

Or something like that.

Try it out, see what kind of response you get. You can always scale it up or down as you need to.
I agree. I think starting out small is a great idea. This will give you the opportunity to make sure you aren't killing your profits.
Reply With Quote
  #6  
Old 01-30-2010, 11:01 PM
justin_time justin_time is offline
Justin
 
Join Date: Apr 2006
Location: French River, ON, Canada
Age: 30
Posts: 1,801
Rep Power: 0
justin_time is on a distinguished road
Default

How about if they get you 5 referrals, they get $25 gift card, if they get you 10, they get a $50 gift card
Reply With Quote
  #7  
Old 01-30-2010, 11:08 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 38,037
Rep Power: 10
Steve has disabled reputation
Default

We are all consumers.

Ask yourself, when was the last time you took part in any referral program.

I can't think of the last time I did because I just feel that no matter what, there will be too many hoops to jump through and I will never get what ever it is they are offering.

The more complicated the process seems, the less inclined anyone is to use it and the less effective it is for you.

When you are crafting such a referral program, think for a moment if it would inspire you to take part.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #8  
Old 01-31-2010, 06:55 AM
markty markty is offline
Member
 
Join Date: Jan 2010
Location: Bridgewater, Nova Scotia, Canada
Posts: 40
Rep Power: 7
markty is on a distinguished road
Default

Gotcha. You know I can't even think of ANY referral programs period.

So keep it simple.

Being a new start up I am trying to be creative in attracting new clients and set myself apart from competitors.

Surely some of the experienced and successful business owners on this forum have had success with a simple referral plan.

Thanks,

Mark
Reply With Quote
  #9  
Old 01-31-2010, 08:17 AM
markty markty is offline
Member
 
Join Date: Jan 2010
Location: Bridgewater, Nova Scotia, Canada
Posts: 40
Rep Power: 7
markty is on a distinguished road
Default

In further researching referral/reward programs that work it is suggested that rewards to customers for referring more customers should be a gift. Gift cards, gas cards, movie cards, etc. These are tax deductible. Discounts on your services are not.

Also, the program should be explainable in one sentence.
"Refer a friend, get a gift". Yes you may then list the gifts.
1st referral= movie gift card
2nd referral= dinner gift card
and so on

As much as some of us guys may not like to admit this, the woman of the house is responsible for most of the purchases/spending that a household makes.(come on guys, you know it's true), So gifts should be sent to her so that she talks to her friends(other females) who will be more likely to make a positive purchasing decision in regards to obtaining your services.
Reply With Quote
  #10  
Old 01-31-2010, 12:12 PM
justin_time justin_time is offline
Justin
 
Join Date: Apr 2006
Location: French River, ON, Canada
Age: 30
Posts: 1,801
Rep Power: 0
justin_time is on a distinguished road
Default

Quote:
Originally Posted by markty View Post

As much as some of us guys may not like to admit this, the woman of the house is responsible for most of the purchases/spending that a household makes.(come on guys, you know it's true), So gifts should be sent to her so that she talks to her friends(other females) who will be more likely to make a positive purchasing decision in regards to obtaining your services.
I can't really say much, i'm a single man ! lol
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Referral idea. Steve Lawn Care Marketing & Post your marketing material for review! 8 10-30-2008 04:08 PM
Referral markerting. Steve Lawn Care Marketing & Post your marketing material for review! 5 12-24-2007 10:24 AM
looking for referral letters landonkade Lawn Care Marketing & Post your marketing material for review! 1 06-02-2007 08:46 PM
Referral program in your business? Steve General Business Discussions 8 10-16-2006 11:57 AM
Two_Dogs here is a referral letter Steve General Business Discussions 4 01-20-2006 11:16 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Landscaper taking on odd...
WarriorLandscapingCAN
08-07-2016 06:57 PM
Today 10:27 AM
by Steve
6 334
fliers
joshp
08-19-2016 03:23 PM
Today 10:24 AM
by Steve
4 104
Breaking into commercial...
SGL1
08-19-2016 07:02 AM
Today 10:12 AM
by mowandblow1980
7 138
Start My Own Business?
mowandblow1980
01-12-2016 07:43 PM
Yesterday 02:23 PM
by Andy S.
16 2,048
Snow Plow
acrajchel
08-17-2016 10:21 AM
08-22-2016 11:21 AM
by Steve
5 122
Quarter Acre Woodland...
ew411
08-16-2016 06:50 AM
08-18-2016 12:25 PM
by Steve
4 116
Bidding Bushhogging
acrajchel
08-15-2016 11:52 AM
08-17-2016 05:32 PM
by acrajchel
4 115
Hello From the Florida...
KevinShuman
08-15-2016 08:57 PM
08-16-2016 01:52 PM
by SC93
2 103
I'm making stupid money...
WarriorLandscapingCAN
08-07-2016 07:07 PM
08-16-2016 12:42 AM
by SC93
5 392
A quick Intro
BLE
08-14-2016 05:17 PM
08-15-2016 10:54 AM
by acrajchel
2 108
New Customer - Gettting...
acrajchel
08-05-2016 05:00 PM
08-15-2016 10:52 AM
by acrajchel
4 371
helping out a friend set...
Doug D
08-13-2016 11:33 AM
08-15-2016 09:45 AM
by Steve
1 123
Small bed job
Bradcook21
08-09-2016 09:52 PM
08-10-2016 03:51 PM
by Steve
1 238
Hello from NoVa
jtwlawn
08-03-2016 11:20 AM
08-09-2016 10:45 AM
by jtwlawn
4 365
How much to charge for...
jymie
03-31-2013 05:59 PM
08-08-2016 04:33 PM
by Steve
27 6,583
Needing a website built
burtle
06-17-2015 09:02 AM
08-07-2016 10:21 AM
by Just for Cuts
18 19,727
Review of our lawn care...
Lawnline
07-12-2016 06:40 PM
08-07-2016 08:44 AM
by Lawnline
5 1,750
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
08-07-2016 08:37 AM
by Lawnline
8 11,206
Hey guys! Greetings from...
thegardener
08-05-2016 05:45 AM
08-05-2016 03:26 PM
by Steve
1 287
First Time Bidding-Need...
capitallawncrew
08-01-2016 08:30 AM
08-03-2016 09:52 AM
by Steve
3 410
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
08-01-2016 08:28 PM
by ExclusiveLawns
7 3,749
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
07-31-2016 10:36 AM
by joshp
13 5,897
Now Hiring Just South of...
Chilehead
07-27-2016 11:38 AM
07-27-2016 11:38 AM
by Chilehead
0 367
Hi from Long Island NY
Lori22
07-18-2016 02:01 PM
07-26-2016 11:22 PM
by Chilehead
11 668
Hi everyone!
greenwavemedia
07-25-2016 03:22 PM
07-26-2016 11:21 AM
by Lawnline
2 381
Hi! I'm Tony from Tampa
Lawnline
07-12-2016 06:47 PM
07-26-2016 11:12 AM
by Lawnline
6 992
Z246 Deck change question
JohnsLawnCare
07-25-2016 01:47 PM
07-25-2016 06:38 PM
by Steve
1 358
DIY Sprayer
acrajchel
07-25-2016 09:13 AM
07-25-2016 06:36 PM
by Steve
1 355
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
07-25-2016 06:20 PM
by Steve
15 932
» Popular Tags
apartment become an entrepreneur best mower be your own boss bidding break business business education business help business management complex contractor hacks contracts deck lift dethatcher edging entrepreneur entrepreneur education estimate estimates fuel problems fuel pump half moon blade intro introduction jjandm lawncare l.t.rich landscape landscape design landscaping landscaping design company landscaping richmond va landscping lawn lawncare lawnservice lowering grade marketing mulch planting raising grade residential lawn care richmond va richmond virginia lawn care safety scag snowblower snow plowing snow shovel sprayer start a business start a lawn care business start business start up toro timecutter townhome tree tree service video web design websites what to charge work from home z-max z-spray
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:47 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 03:47 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy