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
Junior Member
 
Join Date: Jan 2010
Posts: 27
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
Junior Member
 
Join Date: Jan 2010
Posts: 27
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 offline
Administrator
 
Join Date: May 2003
Posts: 37,223
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 offline
Administrator
 
Join Date: May 2003
Posts: 37,223
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
Junior Member
 
Join Date: Jan 2010
Posts: 27
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
Junior Member
 
Join Date: Jan 2010
Posts: 27
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
Hustler Raptor
SGL1
04-13-2015 09:27 PM
Today 07:53 AM
by SGL1
15 322
is craiglist good to...
JBENI
04-16-2015 11:11 AM
Yesterday 10:25 PM
by Wolf4dk
11 205
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
Yesterday 09:35 PM
by avetslawncare
20 721
Could be great news for...
SC93
04-14-2015 11:06 PM
Yesterday 08:58 PM
by SC93
10 270
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
Yesterday 08:40 PM
by ExtremeLawncareServices
53 4,923
Am I missing something...
googus
04-11-2015 06:33 PM
Yesterday 08:01 PM
by avetslawncare
10 359
weed
avetslawncare
04-16-2015 07:56 PM
Yesterday 07:59 PM
by avetslawncare
3 81
Aerating / Dethaching...
Hard-Body lawn & garden
04-12-2015 07:53 PM
Yesterday 07:27 PM
by biglee
14 377
Hello
sonny54
04-16-2015 09:49 PM
Yesterday 03:10 PM
by Steve
1 58
Unreal
Chilehead
04-09-2015 09:12 PM
Yesterday 08:27 AM
by Chilehead
11 411
starting a lawn care...
JBENI
04-14-2015 09:03 AM
Yesterday 08:03 AM
by JBENI
14 369
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
04-16-2015 07:52 PM
by avetslawncare
23 1,189
bidding a cemetery....
NPM_LLC
03-28-2015 10:56 AM
04-16-2015 03:49 PM
by Steve
20 813
New 14 x 7 Enclosed...
whitepropertydetail
04-15-2015 06:46 PM
04-16-2015 03:40 PM
by Steve
1 104
quick pic
joshlawncare
04-14-2015 07:49 PM
04-16-2015 03:38 PM
by Steve
3 164
older used dump trucks
SECTLANDSCAPING
09-22-2011 12:33 AM
04-16-2015 12:41 PM
by biglee
21 7,885
Tax Poll
Steve
04-15-2015 02:13 PM
04-15-2015 02:13 PM
by Steve
0 114
lawn care by Aj
aj10261984
04-14-2015 06:50 PM
04-15-2015 01:43 PM
by Steve
2 136
Contact last years...
googus
01-28-2015 08:13 AM
04-15-2015 12:54 PM
by SC93
7 1,126
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
04-15-2015 08:35 AM
by Bradcook21
7 812
trying to sign up for...
JBENI
04-14-2015 10:20 AM
04-14-2015 12:11 PM
by Steve
1 313
Charging customers for...
Hard-Body lawn & garden
04-14-2015 07:34 AM
04-14-2015 10:35 AM
by Steve
1 149
New member
Jdlandscaping,LLC
04-11-2015 03:24 PM
04-14-2015 05:45 AM
by Jdlandscaping,LLC
2 196
hello
oasis_greenscapes
04-01-2015 06:18 PM
04-13-2015 12:03 PM
by Steve
8 426
New Member
Greenturion
04-11-2015 02:00 PM
04-13-2015 11:59 AM
by Steve
1 161
Client with...
OldSalt
04-07-2015 09:47 PM
04-13-2015 11:57 AM
by Steve
8 369
Getting rid of "mulched...
Mr. Mow
04-12-2015 04:21 PM
04-13-2015 11:26 AM
by biglee
3 187
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
04-13-2015 11:11 AM
by biglee
7 295
Billing methods
jcurr33
03-26-2015 01:33 PM
04-13-2015 11:07 AM
by biglee
15 792
Landscape Fabric
CurbAppeal1
04-10-2015 03:58 PM
04-13-2015 08:02 AM
by Chilehead
4 248
I lost a long term...
Sprinkler Buddy
09-04-2011 02:24 PM
04-12-2015 04:27 PM
by Mr. Mow
17 3,861
Poll & Discussion...
CHEESE2009
09-16-2011 06:16 PM
04-12-2015 04:24 PM
by Mr. Mow
22 5,390
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
04-10-2015 12:05 PM
by Just for Cuts
45 2,076
Snow removal contracts
CDLAWNCARE
03-31-2015 02:57 PM
04-10-2015 11:37 AM
by kslawn
6 442
Do you have medical...
Steve
09-10-2011 11:46 AM
04-10-2015 11:28 AM
by Steve
17 5,163
Shopping Centers
avetslawncare
04-07-2015 07:16 PM
04-10-2015 11:27 AM
by Steve
7 354
Leaf Vac's?
ABurlison
11-07-2007 10:18 PM
04-10-2015 06:12 AM
by RSE
14 5,656
Grass and Leaf vacuum
captain200
04-07-2015 07:05 PM
04-10-2015 06:02 AM
by RSE
4 312
Covering a landscape...
Dan Tanner
03-29-2015 09:01 AM
04-10-2015 06:00 AM
by Dan Tanner
19 909
I have a great idea!
biglee
04-05-2015 06:20 PM
04-09-2015 12:54 PM
by Steve
4 360
lawn care school
kevinburch48
04-09-2015 09:13 AM
04-09-2015 11:27 AM
by Steve
1 217
What do you suggest?
Growing Green
09-20-2011 09:56 AM
04-08-2015 03:09 PM
by Steve
8 3,089
Survey
Ducke
09-20-2011 07:27 PM
04-07-2015 11:33 PM
by SGL1
12 3,414
DOT Number
acrajchel
03-20-2015 05:56 PM
04-07-2015 10:55 PM
by SGL1
14 1,215
Avoiding Clients
CHEESE2009
09-08-2011 10:58 PM
04-07-2015 06:05 PM
by GLAN
24 6,367
Mass/New Hampshire...
jcurr33
04-06-2015 09:48 PM
04-07-2015 04:19 PM
by jcurr33
2 261
Ferris FW35 questions
Chilehead
03-10-2015 08:31 PM
04-07-2015 05:19 AM
by Chilehead
9 782
Dethatching attachments
jcurr33
03-29-2015 08:56 PM
04-06-2015 09:21 PM
by ExtremeLawncareServices
6 498
First estimates
jcurr33
04-04-2015 07:04 PM
04-06-2015 07:19 PM
by jcurr33
4 386
Bid on Mulch and...
TRBW2
04-03-2015 09:11 PM
04-06-2015 07:01 PM
by avetslawncare
7 451
» Popular Tags
aerocore apartment complex auger bark billy goat brushcutter blades bush collections deliquentaccounts design edging employee problems equipment rental ferris flyers foreman free advertising grass growing a lawn care business hills hiring husqvarna john deere quik trac landscape landscape services landscaping training lawn lawn care lawn care business seo lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing marketing marketing secrets more customers business mr dave mulch new business past due per hour charge per hour service pricing profit on employee pto push versus ride running a business scripts secrets to landscaping sell the vision seo shell small engine repair square foot steep lawns sulky theft toro grand stand trailer tree trimmer rack truck new used landscape up sell employee web design website website design winterization won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:48 PM.


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

All times are GMT -5. The time now is 01:48 PM.

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