How much should you offer as a referral reward?

Start with what a new job is worth

Think about a typical job you'd get from a referral, and roughly how much you'd keep after costs. That's the most you could offer and still come out ahead. Most businesses settle on a small share of it.

Compare it with what you spend now

If you already pay for leaflets, adverts or directory listings, think about what those cost per new customer. A referral reward only costs you when a referral actually works out, which can make it easier to budget for.

Make it easy to say

Round numbers are easier to remember and pass on. "£25 when the job's done" is simpler to share than a percentage or a complicated rule.

Match it to the size of the job

• Smaller, repeat services often use smaller rewards or discounts
• Bigger one-off jobs can justify a larger reward
• If your jobs vary a lot in size, a reward that only applies to a completed job keeps it fair

Decide when it's paid

Paying once the referred job is completed means you only reward referrals that turned into real work. Make that clear up front so nobody is disappointed.

In short

Work out a figure from your own numbers, round it, and try it for a while. If referrals are slow, you can test a higher amount later.