Step 3:  Develop an incentive structure and amount

Some of our customers have been almost-offended when we’ve offered to pay them for a referral.

- JD Smith, Business Development Coordinator at Arch Electric

Offering an incentive to your customers is a critical component of a scalable referral program. Common referral incentive structures include:

Single-Sided - The individual who makes the referral is rewarded. 

Double-Sided - The referring individual and the referred prospect are both rewarded.

Non-Monetary - The referring individual is incentivized by self-enhancement.  A gift, thank you note, or just the ability to broadcast their achievement may be enough to provide your Champion with the self-enhancement they desire.

Double-sided rewards are effective because it’s less likely to take away your champion's sense of self-enhancement if they know their friend is getting something of value as well.