Should coaches pay for referrals? 

The debate popped up in The Coaching Jungle this week, and since I'm often asked this question I decided to give my two cents on it. 

I say you should.  

I gladly pay for referrals, and will do it with a smile on my face until the cows come home. 

I pay a 20% referral if I'm going to be working with the new client directly (as a 1:1 or group client), and I pay out a 50% affiliate commission if someone refers a person to one of my online programs, like Your First 5 Clients.

If clients are being given on a silver platter, then why not?  Assuming it's the right fit to work together, you're saving yourself the time and energy that it takes to get new clients. 

Most new coaches assume that they'll be coaching 80% of the time, and that the remaining 20% of the time will be spent on marketing efforts (and some back-end stuff). 

The truth is it's reversed. You'll be spending 80% of your time doing things to find clients, and 20% (or even lower) actually coaching clients. 

So why not save yourself that energy and do everything you can to encourage referrals?

The other side of the debate argues that it's tacky, or is somehow sleazy.

"People should want to send referrals because they love me!" is their thought. 

This is the real world. Yes, some people love you and will refer you without compensation. 

But compensate them and you'll surely be top-of-mind. 

They'll keep their radars up for potential clients who could be a fit for you. 

If it is a match, then instead of a win/win, you're setting up a win/win/win ... 

If you'd like to earn additional revenues from me by becoming a referral partner, hit "Reply" and I'll set you up, 

Marc

PS: Speaking of my Your First 5 Clients program, midnight tonight (EST) is the deadline to get access to it at a 50% discount. To take advantage, head over to www.YourFirst5Clients.com and use the promo code "podcastbirthday" at the checkout!