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How To Launch A Referral Partnership Program? (For Service Based Businesses)

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GetShitDone

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I want to launch an ambitious Partner Referral Program for my Digital Marketing Agency (We charge a monthly retainer to each client, thus making a 50% gross profit)

How do you go about setting up the commission structure for referral partnerships that truly motivate people to go out and refer for you?

I've seen this work for software businesses, etc - but haven't really seen it for a service-based business at a large scale.

I'm considering offering either a one-time setup fee to be paid to the referer OR give them an ongoing commission (Eg. 10% ongoing of revenue for each client)

Any advice on launching a Partner Referral Program?
 

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Paul David

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I want to launch an ambitious Partner Referral Program for my Digital Marketing Agency (We charge a monthly retainer to each client, thus making a 50% gross profit)

How do you go about setting up the commission structure for referral partnerships that truly motivate people to go out and refer for you?

I've seen this work for software businesses, etc - but haven't really seen it for a service-based business at a large scale.

I'm considering offering either a one-time setup fee to be paid to the referer OR give them an ongoing commission (Eg. 10% ongoing of revenue for each client)

Any advice on launching a Partner Referral Program?
Do you work with multiple niches or just one?
 

Kid

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I guess its either big onetime or small but perpetual.
"Big" means bigger than setup price you mentioned.
Sales guys will rather know what value they bring
so offering them just "first month" might not cut out for them.

Best would be calculating Customer Lifetime Value
and basing affiliate/partner fee on that.

As for motivation, i basically think that one big sum for one job
is more vivid. At least in comparison to vague 10% per month.

Also be sure to add performance tiers - the more business someone brings to you the higher reward.
 
Last edited:

Boychamp

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10% (or higher?) of contract value, paid upfront? So, 6/month contract let's just say you charge $1.5k/month. So $9k value, $900 on closing of the contract.

The thought behind this is is you're still paying the same but it feels a lot more enticing than $150/month.
 

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