RefMob – Social Media For Referrals and Bonuses is a new refer-a-friend marketplace that combines (non-sleazy, legitimate) network marketing with referral bonuses and social media.

The business owner can offer incentives, like referral bonuses, to clients and friends who promote their business for them.  For instance, a storage rental company gives a $50 voucher towards rental to the person who refers someone to them and signs a 3 month contract.  The company owner or manager can track those referrals easily through RefMob and can see how far they’re going and fully track how well they’re doing.

The referrer (individual) can split the referral with those they refer as an added incentive to get others to join in the deal.  So that $50 rental voucher can be split into two $25 rental vouchers, one going to the person referred and one going to the person who referred them.  The splits don’t have to be 50/50, though that appears to be the most common model.

Now not only does that one referral generate a bonus, but the person who was just referred can now refer others and generate their own split bonuses as well.  Each of those can do the same, on down the line, until the business getting the referrals cancels the program.

This is very cool and innovative and promises to give a leg up for a lot of businesses.  It gives individuals incentive to promote the business’ they enjoy frequenting and it’s proven that referrals from those who use a service or product are much more likely to turn into sales than any other type of advertising.

From the business owner’s standpoint, this is about as perfect as straight-return advertising as you can get.  Not only are you paying for performance, but that performance is directly leading to sales, eliminating most of your overhead for advertising.  So while you might be giving out $1,000 a month in referral bonuses, you’re likely saving much more than that in your regular marketing costs.  Plus that money going out is based on income already brought in, so it’s like having a commissioned sales staff without the overhead of employment or expense accounts.

RefMob is a San Francisco startup founded earlier this year and debuting publicly earlier in September.

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  1. […] 4. Start a Referral Program with your Current and Past Customers […]

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