I have been running low on coffee today, but I don't really get the benefit of tracking my referrals. How does it benefit me to know who referred me to Mrs. Seller?

Great Idea,  thanks for the info Bruce.

I know the low coffee feeling, but it is valuable to be able to say thank you to anyone who sends you business.  Maybe that is just a thank you card to let them know you appreciate them.  Maybe it is a gift certificate to the movies.  Maybe a gift certificate for dinner at their favorite restaurant.

But mostly, it is to encourage them to give you even more.  For your referrals, perhaps a gift card for more Starbucks?  Whatever is appropriate to help you build your business.  Referrals are much easier to work with than cold clients because you are already connected through your mutual friend.

Do an updated blog in 6 months and let us know how the venture panned out. Looks like a great idea.

Most certainly will.  Alf has lots of experiencce within other service industries already on his site.  Seems a natural for real estate and investing and mortgages and whatever other thing you sell on a people to people basis.

The basic principal is referrals are easier than any other type of selling.  Make referrals easier to get and you will get more referrals.

Expect the follow-up report in perhaps as little as 30 to 45 days though.  Not likely going to require 6 months.

Like DeAndrea, I would like to know how it worked out for you and I'm bookmarking it. I like the concept of people being able to pass on my business card without having to give theirs away. I'm not so convinced of giving an incentive to do it. Bruce, I understand your point though.

Andrea, that's what makes a horserace isn't it?  Each bettor has their own idea of the likely outcome.

Naturally, any incentive you did decide to offer must fit within any regulatory guidelines that cover your business, such as from IRS, RESPA, local state regulators and so on.  That said, and presuming some incentive is allowed, if you ask me for a referral I may give it to you just because I like you and appreciate the business we did together - if I remember at the time the opportunity presents.  If you card mentions that I'd get dinner for 2 at a favorite restaurant, what do you think the chances are I'd remember you more often?

Typically referral gifts in the $25 and lower range are below the IRS threshold, but that may not be true for RESPA (nothing of value except for work actually performed) or your state regulatory agency.  But, where such things are allowed, incentives work.  That's why incentive companies exist to sell you pens, pads, calendars, and so on.  But this idea is much more personal and much more direct.

Look for the update when I post it.

Bruce