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: 33
Rep Power: 6
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: 33
Rep Power: 6
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 online now
Administrator
 
Join Date: May 2003
Posts: 37,506
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: 29
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 online now
Administrator
 
Join Date: May 2003
Posts: 37,506
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: 33
Rep Power: 6
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: 33
Rep Power: 6
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: 29
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
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
Yesterday 11:27 AM
by mattthelawnguy
10 376
Big mowing job
Bradcook21
07-30-2015 03:57 PM
07-31-2015 01:16 PM
by Bradcook21
6 133
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-31-2015 12:29 PM
by Steve
1,227 401,347
Hello Everybody
budspop
07-30-2015 11:42 AM
07-31-2015 12:28 PM
by Steve
1 57
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
07-31-2015 11:34 AM
by googus
9 584
Hello!
brandycarlton
07-29-2015 12:31 PM
07-29-2015 03:54 PM
by Steve
1 132
Assessing the Market
NJDB60
07-27-2015 03:25 PM
07-28-2015 09:24 PM
by Steve
2 247
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
07-28-2015 09:09 PM
by Steve
2 225
Funny craigslist post
GreenWorx
07-28-2015 07:17 PM
07-28-2015 09:02 PM
by Steve
2 237
Watch out for this -...
rootytalbot
07-22-2015 02:13 PM
07-28-2015 09:00 PM
by Steve
7 385
NewVenture
NJDB60
07-27-2015 03:38 PM
07-28-2015 08:58 PM
by Steve
1 222
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
07-27-2015 06:40 PM
by GreenWorx
17 773
how to make customers...
Bradcook21
05-27-2015 05:04 PM
07-27-2015 06:08 PM
by GreenWorx
15 2,950
Need your help, Gopher...
Chilehead
07-23-2015 07:02 PM
07-27-2015 11:28 AM
by Steve
11 377
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
07-27-2015 11:22 AM
by Steve
94 10,449
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-25-2015 07:50 AM
by Chilehead
12 2,419
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
07-22-2015 07:31 PM
by Chilehead
14 2,489
Learning as I grow -...
WarriorLandscapingCAN
07-18-2015 07:46 AM
07-21-2015 10:53 AM
by Steve
3 317
Large dirt mound removal
purdue1973
07-09-2015 07:45 PM
07-20-2015 12:55 PM
by Steve
6 448
Hey everyone
Fantasy landscaping
07-09-2015 06:53 AM
07-09-2015 11:47 AM
by Steve
1 331
Quickbooks Online
jscarolina
07-08-2015 07:54 AM
07-08-2015 12:55 PM
by Nate10928
1 353
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
07-07-2015 09:48 PM
by SGL1
16 2,746
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
07-07-2015 02:54 PM
by GreenWorx
13 3,688
Is it too late to do...
markty
06-16-2015 05:28 PM
07-07-2015 01:00 PM
by problem solver
9 2,497
Hi everyone
Mattw
07-06-2015 05:59 PM
07-07-2015 10:18 AM
by Steve
1 358
4th of July parade...
Steve
07-06-2015 10:35 AM
07-06-2015 10:35 AM
by Steve
0 304
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
07-06-2015 10:30 AM
by Steve
4 481
another newish job for me
holymoly
06-07-2015 08:34 AM
07-03-2015 02:06 PM
by American L&T
9 2,489
» Popular Tags
accounting aerocore applying bark blowout bob villa bush collections contract help curb appeal services deliquentaccounts demonstration design door hangers edging employee problems facebook financials flyers free advertising free lawn care google growing a lawn care business hardscapes hiring how to hydro increase customers invoicing jobs landscape services landscaping landscaping training lawn care lawn care busines plan lawn mowing marketing more customers business mr dave new business ordinance past due patio install per hour charge per hour service plowing pricing quickbooks online scag secrets to landscaping sell the vision seo shreaded small engine repair snow plowing solo solo backpack sprayer sq ft square foot swzt tree tree pics up sell employee walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:45 AM.


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

All times are GMT -5. The time now is 12:45 AM.

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