Hi,

What do people think about using referral offers as a way of getting customers? Is it effective in getting those all important first 100 customers. In my experience the best advertising is through word of mouth and surely by encouraging people to refer friends etc this is a bonus. I was thinking the most effective way of doing this probably a cash incentive to those that refer others, or alternatively a credit agaisnt future hosting accounts with us.

What do others think?

Cheers
Justin

I think that is a very effective way to grow your business. Refer a new customer and get a month or two of free hosting.

And you're right. WOM is the best form of advertising.

Vito

Encouraging your customer to refer friends and WOM both are effective way to get more and more customers. However I think they should be suitably rewarded for such good thing, rewarding them by "gift cards" rather than cash incentive can be much better as a gift cards can be memorable to them and on other hand it’ll create good image of your company too as generally most of the companies are offering one month free service and some other alternative.

You should Keep no limit to the number of referral rewards so that they can earn more by referring more and more customers.

You could offer a customer free web hosting if they can find you 2 clients. That could be a good referral system.

I think it's important to mention in your operating policy for particular referral program that the new customers must stay with your hosting service at least for 90 days, this should be clear to your existing clients those who are going to participate in your referral program to avoid the chance of chargeback might be created due to a wrong intention.