It's no secret that I refer out copywriting business to several members of this board. I do it out of courtesy to clients, partners, associates, etc.

and... I'm not a copywriter for hire -- so it's really no skin off my nose.

Now...

A few weeks ago one of my partners was looking for a copywriter for one of his clients. He asked me to refer some copywriters.

When he described the "type" of work... I thought of one person specifically who I thought would be "perfect" for the job.

A member of this board, actually.

I made the referral. Even sent an email to the copywriter giving him a heads up that my partner (or his client) might be in contact.

I received a nice email back saying, "Thanks!"

Result...

The client hired this copywriter.

End of story, right?

NOPE!

Today, I received a PayPal transfer for a sum of money noted as a "referral fee" from this copywriter.

Now get this... there was no pre-existing, much less formal, agreement between me and this copywriter for any kind of "JV" or "Referrals" etc.

This copywriter sent the "referral fee" to me completely unexpected.

And, there was a note attached that said something like... "This is for the deposit, look for additional next month when I get the balance."

I want to make two points here:

1) When I heard about the project, I immediately had A copywriter in mind. That's because this person has purposefully positioned themself to focus on a specialty.

2) Guess who I'm going to think of next time I hear of a similar project?

2.5) I think it's just darn classy of this copywriter to do this.

Just thought I'd share this... hopefully it's good food for thought if you're looking for ways to create a "stream of client referrals."

Cheers!!!

Now that's what I call integrity!

Thanks for sharing this JP... I wish more people in business
operated this way.

Way to go (whomever you are).

that is cool...

There was another copywriter on here that
posted a job he didn't have time for and someone
else took it and didn't send a referral fee and it
erked him.

Definitely a good idea to foster good alliances!

I agree with that practice.

On the other hand, I couldn't personally get too bent about someone who didn't think to send me a referral fee if I hadn't asked for it up front.

But it's just good business in my book.

A.

I run into this all the time in the web hosting world. I am free with referrals to people/companies I trust, simply because they've done right by me... I have no expectation of a kick-back, I just know that if I make someone happy I am super-appreciative of a referral, and I like to help others out if I can. Well, I've been surprised by quite a few referral payments to my Paypal account. They are always so generous! Which makes me feel weird 'cuz I was just doing it to be nice. It's how my Mama raised me! LOL

... but I've taken the family out to dinner or the funpark a few times as a result, I figure, who better to spend it on?? So it went to a good cause.

Bailey

This is a great topic!

Having a good referral program in place is just smart business, no matter what you sell. I recently reworked mine, and it's been a real success.

The biggest 2 things that have made it a success for me were:

1) A strong incentive for them to refer business to you. You can almost always afford to give up more up front and make it back over the long haul. It's a no-brainer, because here is work that you wouldn't have gotten otherwise. So you don't want to be stingy here, or they'll smell it. For this approach to work however, you've got to focus on promoting repeat business so you DO make back your referral incentives and then some.

2) You've got to let others know about it. Specifically, those most likely to refer business to you. Your "A" clients. Your colleagues. Prospects who may turn into "A" clients. And like any copywriting/marketing gig, you need to let them know WIIFM.

John

Referral fees are a really good way to end a relationship.

This is an example of tactical thinking.

If you follow the teaching of Jay Abraham. AND they are
not just academic but strategic and become part of your
life, you want a different kind of referral program.

Check out Jay's work on referrals for more details.

That is ridiculous. Referral fees are an excellent way to BUILD a great relationship.

Harlan,
Although I respect your opinion and that of Jay Abraham's as well, I will have to stand by my postition on this one (unless you have the power to convince me otherwise).

Do you have any excerpt or can you at least give us a reason behind this (re: that it can hurt relationships).

I don't quite understand what you mean.

I don't think it should be "mandatory" for a copywriter to ask for referrals, but I do think it is important for the one getting the referrals to pay his or her gratitude with some form of benefit to the one giving the referral.

Being the smart marketer, I would think that you believe in the value and importance of recipriosity.

I know you have used this method in your own marketing.

In fact, I've gotten many things from you without you asking a penny for it (example: the two books you sent me).

Heck, I didn't even have to pay for the shipping!

And guess what Harlan... the next time you have a product or service (that is within my budget) I will more than likely be on your list of happy buyers.

Why?

Because I appreciate the way you gave me something in the past and didn't ask for anything in return.

So going back to my main reasoning...

Copywriter gives work - asks for nothing in return.
Copywriter takes referral and gives back to referrer.

I believe this is just good business practice.

Perhaps you can convince me otherwise.

I think that is about more then money.

we don't give our friend money, but gift.

it is about a returned courtesy.

it may be translated in an amount of money (refferel fee) or in an other way.

referal fee may induce this perception :

"you refer client to me, and I give you a referal fee that all" (no one own something to the other), the good deal is to go beyond money.

when someone reffer a client to you it is not a kind action , but it is simply mean that this person :

1)respect you.
2)trust you.
3)and that you are in his mind.

and no amount of money can be a price for those 3.

so, when we take refferel and fee regarding only the material side (money ) it may induce the :"end a relationship" if the reffered person forget or miss the courtisy to send something.
and this is what this quote is about :

remember; we don't offer a friend money but gift.

and this is the subtility.

I disagree wuth DOC in one thing the sentence (1), I think that this behavior may and have to be natural one.

we don't plane to be a friend or a courtious person, it is just an attitude.

people often do that, when some one X help an other Y, the helped one often say :"if you need something, please don't hesitate and ask me".

he don't say :"hey here is a 10$ or any amount of money" .

you can send money too, but it is about the thinking (if you send make it sound a gift not as an obligation).

sometimes words are worth gold.

a simple email (thank you for reffering this client to me, ...it will be my plesure if I can help in any way , please don't hesitate to ask ...)

is better then giving a NUDE refferal Fee.

because those courtisy in word may open the door to a worthy partenership and a solid one and may be more then partner.

it is more then money.

and remember we don't offer money for friend, but a gift.

this is my vision I may be wrong.