Referral rewards: cash, discounts or vouchers?

Cash

Cash is simple to understand and useful to everyone. A customer doesn't need to buy from you again to benefit, which makes it a natural fit when work is occasional, such as a new roof, a rewire or an extension.

• Pros: universally valued, easy to explain, works for one-off jobs.
• Cons: a direct cost to you, can feel transactional if the amount is large, and needs a way to pay it.

Discounts

A discount off a future job or appointment rewards the referrer and brings them back to you. The real cost to you is usually lower than the face value, because you're giving time or margin rather than money out of the account.

• Pros: encourages repeat business, cheaper than cash in practice, feels like a loyalty perk.
• Cons: only valuable if the customer plans to use you again; less appealing for one-off work.

Vouchers and gifts

A gift card, a free service or a small gift can feel more personal than money. Vouchers for a local café or a shop also support other local businesses, which some customers appreciate.

• Pros: personal, memorable, easy to keep at a fixed cost.
• Cons: not everyone values the same voucher, and you need to buy or source them.

Start from your average job value

A practical way to set the amount is to think about what a new customer is worth to you over their first job, and what you'd be happy to spend to get one. Many businesses already spend money on adverts, listings or leaflets; a referral reward is paid only when work actually arrives.

Repeat-purchase businesses

Cleaners, barbers, beauty salons and personal trainers see the same customers week after week. For them, a free or discounted visit is often the most natural reward: it costs a slot rather than cash and keeps the referrer coming back. Some also reward the new customer with a discount on their first booking, so both sides benefit.

• Barber: a free cut for the referrer when their friend books.
• Cleaner: one clean half price after a referred client's first visit.
• Personal trainer: a free session when a referred client signs up.
• Beauty salon: money off the next treatment.

High-ticket businesses

When jobs are worth thousands, such as roofing, kitchens, landscaping or building work, customers may only need you once every few years. A discount on their next job won't mean much. Cash or a meaningful voucher is usually a better fit, and the job value can support a more generous amount.

Think about what motivates your customers

Many people recommend a good business without any reward at all, because they want to help a friend and support someone they trust. A reward works best as a thank-you that tips the balance towards actually sending the link, rather than the main reason to do it.

That's why clarity often matters more than size. A modest reward that's easy to understand and reliably paid can do more than a large one with confusing rules.

Decide when it's paid

Whatever the reward, be clear on when it's earned. Paying once the referred job is complete is common, because you know the work went ahead. Tell the referrer when their reward is ready, and pay it promptly.

Test and adjust

Start with something simple, run it for a few months, then review. Are people referring? Are the referred customers the kind you want? Is the cost comfortable? If not, change one thing at a time and see what happens.