Social networking has several platforms. With these platforms, comes opportunity if you look beneath the surface. Think about how many advertisers you see on Facebook and Twitter, marketing and promoting their wares and services galore. While you might find these things trivial and mundane, you might change your mind if you think about a way to make some money from it. The good news is that making money on a social networking referral base is easy, fun and has unlimited potential for earnings.
Set up a Referral Network
Any advertiser or business owner worth his weight in salt understands that word of mouth referrals are powerful. Begin with your own sphere of trusted providers. Think about the mechanic who did a superb job, the hairstylist that gave you that stunning look, that lawyer you love, or the Realtor who did a phenomenal job helping you sell or buy a home. Contact them. Inquire about a potential referral fee for sending them, clients. Most people are happy to oblige.
As you find yourself in need of services, look to your Socialized network. Expand your referral base. Have someone in nearly any area that you can confidently say, “They do a great job.” Set up a flat rate for referrals in a written agreement and start referring.
Set up your Tracking System
There are many lead tracking systems you can use online, but Excel is my favorite and it’s free. Put together a spreadsheet for each provider. Create columns for the name of the referral, the referral’s contact information, the date you referred them and whether or not the referral was successful. Part of having a thriving referral fee company is not by charging a “finder’s fee” but charging vendors for referrals that worked out and used that business or service. Once a referral is completed, send your provider an invoice for the referral fee, and collect. This can be easily managed using online services like PayPal.
Written agreements for referral fees are available for free online.
Only do business with people you trust. Referral businesses are no different. In order to collect your fee, work only with honest and reputable providers.
Take your time. Any successful venture is going to require six months to a year to get off the ground. Start part-time and work your way up to full time.
Expand your social network and then develop some more. Referral businesses only work if you stay on top of your social network. When someone posts a tweet or status update asking for a good mechanic, you need to be able to provide that information stat. Market yourself as the person who provides referrals to exceptional services. Interact with your friends lists regularly to build rapport and relationships. Become a trusted and reliable source of information and watch your business prospects explode.
Remember that at a flat rate of $25 per referral, simply referring 5 people a day means a steady income of $2,500 a month. Referring more earns more. This can be a lucrative and rewarding opportunity when you implement it. So, what are you waiting for? Start networking!