Most People don’t know what referral marketing is, so here is a little insight…
Practical Terms
If you are a customer of a company that has a referral marketing program, when you refer someone to that company and they become a customer of the company, the company sends you money for referring the new customer. Each time that customer purchases you can receive money. You can refer as many people as you want and you can be compensated for each customer. You can also receive income from the referrals of others if you choose to. There are no sign–up fees, no starter kits, no direct sales, no stocking of products, no paperwork, and everyone purchases direct from the manufacturer at wholesale. It’s simple and easy to do.
Where’s the Catch?
There isn’t one. Pure referral marketing is exactly as I just described it. It is risk free and it is a great way for anyone to create extra income. Of course if you desire to develop a larger income it will take time and dedication as would anything else you would do. However if you like a little of the economic and business realities of things, the next part will give you more insight.
Referral Marketing, the technical description.
Referral Marketing is a business strategy where a manufacturer rewards their customers for referring customers (essentially partnering with their customers). Traditional retail selling and advertising require very high marketing costs and distribution costs which are added to the price of products. Instead of investing in these traditional distribution, advertising, and marketing channels, a pure referral marketing company uses this money to create a much higher quality of product and to provide income to those who refer customers. This creates the best possible situation for the customer who now receives a higher quality product at an affordable price shipped conveniently to their door, with the protection of full manufacturer guarantees.
Is this like Network Marketing (MLM)?
Network marketing requires sign-up fees, starter kits, investments in inventory, direct selling, and typically has a high pressure environment. None of this exists in referral marketing. In both cases, multiple people are compensated from the movement of a product, but this is also true of every business in the world that employs more than one person.
Is this like Affiliate Marketing?
Affiliate marketing such as that employed by Amazon and many other successful web-based businesses, will generally only compensate you for the first purchase a referral makes. They do not compensate you for recurring orders. Referral marketing can compensate you for the life of that customer.
I hope this is helpful and beneficial. Most of the population would be better off in life if they added a referral marketing income tho their household. They just don’t know it exists! If you’d like to know more contact me or someone you know who earns an income through referral marketing.
