Short speaker segment advising businesses to pay referrers a commission roughly equal to customer acquisition cost because referred customers convert at higher rates and behave better; paying commissions incentivizes continued referrals and is framed as low-risk. Includes an anecdote where an unexpected offer of commission increased referral volume.
If somebody sends you a referral you would be wise to pay them a commission even if they don't ask because that is going to incentivize them to continue doing it and you want you should pay them a commission that is approximately what you would pay anyway to acquire that customer because they're probably going to convert at a higher rate. They're probably going to be better behaved and this person and it's a risk free thing. And so yeah you're right. This, this other company we sent them a deal and they're like hey here's what we're going to pay you on this one and here's what we'll continue to pay for all the other ones. We didn't ask for it, we didn't really even expect it but you better believe we're going to be busting our butts to send them more people now as a result of them doing that out of the kindness of their heart await out of the kindness of their pocketbook.
