Are you allowed to...

[keirms]

...give money to existing clients for them referring you to their friends?

You see businesses offering money off their services, M&S vouchers etc. but I don't think I have ever seen a business giving away cash as an incentive?

Is it legal? If it is, why don't businesses do it more often?

What do you reckon?

Cheers,

Keir

PS Also posted on shell livewire

 

[Rob Holmes]

I'm pretty sure it's legal - so long as it goes through the accounts.

We generally give a case of wine for a decent referral

Rob

 

[Ozzy]

It probably isnt done that often because it is harder to track cash than it is to track vouchers.
For example, if M&S offered cash from the till to give people for referring a friend imagine how much cash would start disappearing!

Yes it is legal and is considered as commission, but cash isn't normally used because it is hard to account for its movements through the books, and I suspect isn't as "tax deductable" as say "a case of wine" or "M&S Vouchers" (speak to an accountant)

 

[keirms]

Aaahh... now that makes a lot of sense. We are a very small business so tracking cash would be easy but I think I need to speak to an accountant before I get some referral slips printed up.

Giving a case of wine as a personal training business just doesn't seem right to me!

Thanks for the advice as always,

Keir

 

[Rob Holmes]

Giving a case of wine as a personal training business just doesn't seem right to me!

Better make it red wine - I've heard that it's good for you

Rob

 

[philjeffs]

I give commission to anyone who introduces my services that leads to new business, be they exisiting clients, self-employed sales agents, or anyone on the business forums I post to.

Works fine for me as long as the recipient provides me with an invoice for my books.

 

[daveashton]

I give commission to anyone who introduces my services that leads to new business, be they exisiting clients, self-employed sales agents, or anyone on the business forums I post to.

Works fine for me as long as the recipient provides me with an invoice for my books.

The easiest way is to provide a discount on their next order. That way you win twice!