Referral policies - any suggestions?

[Linda S]

I am in the process of tweaking and re-writing our referral program. The basic idea is "refer X number of new clients and get X minutes of massage for free".

I regret to say it has been my experience that if there is even a TINIEST loophole in your policy or something is only 99% cut and dry, not 100%, someone will ALWAYS find a way to abuse it. I also must say that the majority of clients are respectful, it's the 1% that leave a bad taste in your mouth after dealing with them and make these policies necessary.

We are a group of independent practitioners and our policies are slightly different. I give 15 minutes for each new client. I had to exclude gift certificates after this Xmas season when a woman arm wrestled me into giving her a 1/2 chair massage for buying 2 1 hour GC's. She was the first one to ever do that and hopefully the last one. I am still mad at myself for not being firm but I have to say that she called at a VERY bad time, on a VERY busy day, when I had 2 other clients standing in front of me. Anywho, the fact that I am still mad means that those $120 I got for the GC's were not worth it.

My coworker recently had a massage party: went to someone's house and massaged this lady and her 3 friends. ALL new clients. Her referral policy is that she will give a 1 hour massage for each 3 clients referred to her. Well guess what. The hostess saw the referral offer and said that she should get a free massage since she referred 3 brand new clients. My coworker got taken aback and at the time they joked about it and she thought that was the end of it. A reasonable person would not take her policy that way. Apparently, the woman took it seriously b/c now she is calling demanding her free massage. My coworker feels that this is not the correct situation since the woman was not an existing client at the time and those 4 women made a collective decision to have a party and get massages. Unfortunately, her written policy did not state that. The MT also waived her travel fee of $45 for those women (they pressured her into that).

We thought we would print off referral cards with referral policies disclosed on the back. Here are the stipulations I came up with.
- You will receive 15 minutes of complimentary massage for each new client who receives 1 60 minute massage or 2 30 minute massages
You will receive a card in the mail within 2 weeks of a qualified referral. Please refer to your card for complete information
- You must be an existing client at the time yoru referral comes in; having received massages from us in the past
- You and your referral must make appointments with the same massage therapist as we are a group of independent practitioners and although we share the same location, out businesses are not related
- We regret that any referrals for gift certificate purchases are not included in the referral program
- Your account must be in good standing in order to collect referral benefits (e.g no NSF checks)
- We regret that late cancellations or no-shows will waive any referral benefits
- If you are hosting a massage party, please discuss any hostess benefits with your therapist

The BOTTOM LINE is that I still want people refer their friends to me, but I don't want to feel taken advaneforum.xxxe of as a practitioner. And if I do want to give any extra perks for referring clients, to someone who wnet an xtra mile I want to be left up to me, not b/c someone argues with me till we are blue in the face!

 

[Cecil]

Blah! That made me sad reading about those who took advaneforum.xxxe of your program. It is so hard to stay firm at times but this is all about learning.

I like your wording and think it is very clear. Have no doubt, someone will STILL try to push you. :roll: But now you can say, read the policy!

Let us know how it goes.

 

[LunaLovegood]

Ugh - that's amazing.... :roll:

I can almost imagine the little guys on the drug commericials reading that list "may cause nose bleeds, vomiting, upset stomach, uncontrolable urges to gamble...."

 

[Ross G.]

This might not be the kind of suggestion you are looking for, but I'd suggest you don't give referral incentives.

IMO, they are the same as fishing for a compliment, or asking for a tip.

 

[pepotskie]

This might not be the kind of suggestion you are looking for, but I'd suggest you don't give referral incentives.

IMO, they are the same as fishing for a compliment, or asking for a tip.

I thought about that! After dealing with the Gc lady. It's not that I enjoy sounding like a TV commercial but sadly I need to protect myself otherwise I will be spending a lot of time arguing with people about their "free" massages.

 

[Mycala]

I also suggest that you don't give referral incentives at all: in other words, dont' give free massages for referrals.

I simply have cards available and give them freely to my clients, saying "If you know of anyone who needs my work, please give them a card." When I have clients who refer people to me, I will give them other incentives randomly - not agreed upon prior. One client I wanted to try a new body wrap on. So I asked if she would be my guinea pig and then didn't charge her for the extra service, coming to an almost 2 hour treatment. Another I gave an extra 30 min to his 90 minute massage on his birthday. 2 hour massage! He was stoked. Simply put - I take care of my clients who refer people to me.

Anyway, this makes their referrals that much more genuine. They are really talking me up because they love my work -- not because they're trying to get a free massage.

 

[Balaji]

Where I work as an IC, the owner of the clinic sends out a $10 discount for a referral. She eats the costs - which is good. The referred client must indicate on her/his intake form who referred them to the clinic. Just a thought.

 

[Smiley Sophie]

People should refer others to you because they want to - not because they want a discount or free massage.

I think giving a free massage is way too much.


When I started building my practice up again a few months ago all I said to my regular clients is that I am adding a day and my schedule was full in a few weeks.

Julie

 

[Samuel]

When I started building my practice up again a few months ago all I said to my regular clients is that I am adding a day and my schedule was full in a few weeks.

Julie

Julie, if you don't mind me asking, what is "full" for you?

Did you add a day and start having 6 extra clients per week on the new day, or just one or two extra clients per week?

I ask, because sometimes what is full to one and full to another therapist are two different things.

~~~

Side note: I did some research a few years back on the effectiveness of Gift Certificates and the prices/discounts that work, bring clients in, etc. I was really wondering if a certain price made a difference and had the time and connections to check it out.

What I found out (even though I never got around to putting it into our Research Section) was after about a year and probably 500 gift certificates of varying quantities between half-off ($37.50 since I charge $75) for an hour massage, $25 off, $20 off, $15 off and $10 off.... i'd get just as many people coming in on the $10 off as the higher amounts.

Now this may not be the case for everyone else, but it is what I found to be true.

So, to keep a little change in your pocket and not feel like if you offered more off, more people would come, I lean toward just $10 off for coupons and the like.


Hope this helps.



07/19/08 - edited for typos. I seem to always find them later...

 

[Vemsteele]

Referral policies - any suggestions?

We thought we would print off referral cards with referral policies disclosed on the back. Here are the stipulations I came up with.
- You will receive 15 minutes of complimentary massage for each new client who receives 1 60 minute massage or 2 30 minute massages
You will receive a card in the mail within 2 weeks of a qualified referral. Please refer to your card for complete information
- You must be an existing client at the time yoru referral comes in; having received massages from us in the past
- You and your referral must make appointments with the same massage therapist as we are a group of independent practitioners and although we share the same location, out businesses are not related
- We regret that any referrals for gift certificate purchases are not included in the referral program
- Your account must be in good standing in order to collect referral benefits (e.g no NSF checks)
- We regret that late cancellations or no-shows will waive any referral benefits
- If you are hosting a massage party, please discuss any hostess benefits with your therapist

The BOTTOM LINE is that I still want people refer their friends to me, but I don't want to feel taken advaneforum.xxxe of as a practitioner. And if I do want to give any extra perks for referring clients, to someone who wnet an xtra mile I want to be left up to me, not b/c someone argues with me till we are blue in the face!

I don't like the "We regret" wording. Why have it as a policy if you regret to make it a policy? It might invite haggling.

 

[chad]

I'm really sorry to hear about y'all's troubles with some people. So many people these days have a serious entitlement mentality. And unfortunately, Anastasia and others are right--people will weasel their way through any loophole, even those we don't see. Unfortunately, my Policies page is HUGE and overboard, but it all has to be said up front due to the headache that many past clients have presented to me. It's sad, really. It causes faster burnout in a profession that I would otherwise love wholeheartedly. "Give an inch, they take a mile." Sometimes it's hard to avoid giving an inch.

My doctor's office has a sign that says "Feel better? Please tell others". And when I refer people, he always thanks me very sincerely. No incentives. No "rewards" no nothing.

I'm not sure if this holds true for us MTs, but I know that in other healthcare professions, practitioners can't offer much at all by way of incentives or discounts or monetary/gift-like thank-yous for referrals. It's seen as a "kickback" and there are heavy laws against that. But like I said, I dunno if we fall into that or not. It could be seen that way, especially depending on the laws in your state.

I used to give referral thank-yous in the form of time credits like Anastasia and others. I have since stopped. I really didn't notice much difference in the number of referrals between now and the time when I did offer an incentive. Just my thoughts

Hugs,
~Jyoti

 

[Pompal 09.]

Through my work I go to a lot of MT's (yeah, life's rough) and when I get good service I tell everybody.

Seems like most of the people I refer heavily give me a random "treat." As far as I can tell, there is nothing structured. The other day I got a $15 GC to one of my favorite restaurants from an MT.

A couple weeks ago, one MT greeted me with a huge hug (we can hug, we're okay with that), thanked me energetically and then said, "Share my cookie with me!" and gave me half her cookie. It was a really good cookie.

Another place will randomly send out a $5 discount card, but I think that's to get me to call and book ... which usually works, too.

I'm happy to be aknowleged. But the cookie was good, too.

I agree, though, it truly depends on your clientele -- what they will respond to. Learning how to say "no" is a bummer and you may have to say goodbye to a couple few folks. Be strong. Keep it simple. don't short-change yourself.

Eileen

 

[Helpfull?]

We send a hand written thank you note with a free add-on (parafin hand treatment, aromatherapy, scalp masage ect..) or sauna session. Sometimes we just send the card. I think just letting your clients know they are appreciated is the important thing.

 

[SkepDoc 2.0]

I give referal credit for those who come in with a gift certificate. Money is money is money, and heck, I got paid for this certificate a long time ago, so woo hoo.

 

[imamidnightlover]

Seems like most of the people I refer heavily give me a random "treat." As far as I can tell, there is nothing structured.

That's funny that you say that. I never was able to really describe how and why I give. But, a random treat says it best. :grin:

It's fun for me and it's fun for the client!

Sorry for getting off track!

 

[mckenziecalhoun]

Referral policies - any suggestions?

While skimming through "The Educated Heart" by Nina Mcintosh, I stumbled upon this:

Massage Therapist Margaret offers a free massage to any clients who refers five new cilents who make and keep and appointment with her.

Bodyworker Bruce has an arrangement with a chiropractor (for whom Bruce does not work) to give the chiropractor $10 for each new client the chiropractor refers.

These practices are know as "kickbacks," and are both unprofessional and unethical. Prospective clients need to be able to assume that the person recommending you is doing so because he appreciates your competence and skill, not because he is getting a fee or a service in return. Evn though the referrer may appreiciate your abilities, the reward can influence his judgement. ***pages 143 & 144 from the 2nd add.

This issue has been on my mind lately. I have never offered referral rewards as it never sit well with me, but I didn't really put much thought as to why, it just gave me a pit in my stomach. Recently my colleauge (we are both renters at a chiro) started a referal special and it brought to attention why I don't feel I can offer the same thing. I want my clients to refer to me because they appreciate my work so much that it's natural to refer to me, not because they will get some kind of bonus on the form of extra time.

 

[Pompal 09.]

~~~

Side note: I did some research a few years back on the effectiveness of Gift Certificates and the prices/discounts that work, bring clients in, etc. I was really wondering if a certain price made a difference and had the time and connections to check it out.

What I found out (even though I never got around to putting it into our Research Section) was after about a year and probably 500 gift certificates of varying quantities between half-off ($37.50 since I charge $75) for an hour massage, $25 off, $20 off, $15 off and $10 off.... i'd get just as many people coming in on the $10 off as the higher amounts.

Now this may not be the case for everyone else, but it is what I found to be true.

So, to keep a little change in your pocket and not feel like if you offered more off, more people would come, I lean toward just $10 off for coupons and the like.07/19/08 - edited for typos. I seem to always find them later... [/quote]


I like this!

 

[AUM]

Referral policies - any suggestions?

we've recently decided to do away with any and all gift certificates, discounted packages (I will still sell a package to known clients whom I know will use them), and "referral discounts". I haven't noticed ANY more referrals coming when we offered a referral discount as when we didn't. Those who refer folks to us do so for one reason: they like what we do. In fact, we've had certain clients actually REFUSE discounts because they "didn't do it for that reason." It will sure make my bookkeeping a lot easier! We may decide to run "specials" from time to time in the future, and we do offer a 10% birthday discount during a client's birthday month (sending out birthday cards has been fun, and appreciated by several clients even when they don't come in "on time" for the discount). But I'm learning that the simpler, the better.

 

[linda]

Referral policies - any suggestions?

Wow, that sucks, Anastasia. It seems like it would be easier if you just didn't reward clients for referrals. Having to use a lengthy disclaimer seems strange for a simple referral. Your clients don't seem to understand what a referral is. Joking about the matter, as your co-worker did, is just asking for trouble, right there was a great opportunity for her to explain what a referral is and isn't. In your policy, just state what a referral is - basically when a regular (meaning client who has been in before) client sends a family member or friend to schedule an appointment to receive your services, excluding gift certificates. Not that sentence exactly, but you get my drift. Something like that is easier to read than trying to understand lines of rules and regulations--that kind of stuff just shuts my brain off!

I'm not sure what your situation is, but are you all working from the same practice or office? If that's the case, it may be helpful for the therapists in your group to get together and adopt similar policies so as not to confuse the clients. If your co-workers are such pushovers in their work & not setting boundaries, no wonder your having such a difficult time in yours! You're paying for their lack of boundaries and that's probably why you're having so much trouble.

Convoluted wrote about "kickbacks". I don't think giving a free hour massage for five referrals is considered a "kickback". What she (MacIntosh) referred to is when a health care professional gives referrals for a reward. In fact, it is illegal in some states (or maybe all?) for that to happen, for instance if your chiro refers you to a massage therapist or physician and the chiro receives something for the referral from the massage therapist or physician. That's not the same thing as a regular client giving referrals for a reward. Why not reward your regulars?

 

[Carly]

Referral policies - any suggestions?

Convoluted wrote about "kickbacks". I don't think giving a free hour massage for five referrals is considered a "kickback". What she (MacIntosh) referred to is when a health care professional gives referrals for a reward. In fact, it is illegal in some states (or maybe all?) for that to happen, for instance if your chiro refers you to a massage therapist or physician and the chiro receives something for the referral from the massage therapist or physician. That's not the same thing as a regular client giving referrals for a reward. Why not reward your regulars?

Just to clarify. I should have put quotes in that paragragh. she was talking about how both situations are kickbacks

While skimming through "The Educated Heart" by Nina Mcintosh, I stumbled upon this:

Massage Therapist Margaret offers a free massage to any clients who refers five new cilents who make and keep and appointment with her.

Bodyworker Bruce has an arrangement with a chiropractor (for whom Bruce does not work) to give the chiropractor $10 for each new client the chiropractor refers.

"These practices are know as "kickbacks," and are both unprofessional and unethical. Prospective clients need to be able to assume that the person recommending you is doing so because he appreciates your competence and skill, not because he is getting a fee or a service in return. Evn though the referrer may appreiciate your abilities, the reward can influence his judgement." ***pages 143 & 144 from the 2nd add.

This issue has been on my mind lately. I have never offered referral rewards as it never sit well with me, but I didn't really put much thought as to why, it just gave me a pit in my stomach. Recently my colleauge (we are both renters at a chiro) started a referal special and it brought to attention why I don't feel I can offer the same thing. I want my clients to refer to me because they appreciate my work so much that it's natural to refer to me, not because they will get some kind of bonus on the form of extra time.