Thankfully we’ve never had to advertise because “word of mouth” has kept our business growing organically. Since a lot of our customers come to us as referrals, we felt it was only fair to offer a commission. Occasionally, an accountant will be looking for an app for their client and come across us. We’ll tell them that if their client purchases, they can earn a commission and they say, “No, I’m just doing this to help my client.” I could never understand why someone wouldn’t take free money.
Then I came across this article by Lee Warren. He explains that he doesn’t take commissions because he’s worried he might start feeling biased toward a company that pays him rather than one that is a better fit for his client. He goes on to say the core of his business is trust and questions how much his clients would trust him if they found out he got paid a referral fee.
He takes a different approach towards commissions. He explains it this way. “If I recommend you to a client of mine, and they use your service, I’d like you to take the referral fee that you would have paid me, and give it to the client as a discount, and let them know. That way we all benefit. I’ve recommended a service which is genuinely useful, you’ve gained a new client, the client has got a new service at an unexpected discount, and we’ve all increased our trust with each other.”
At a time when so many people are asking, “What’s in it for me?” it’s refreshing to find a scenario where everybody comes away a winner. So, I hope we are one of many companies that will change their policy and offer commissions for referrals or have your client’s purchase discounted.