How to Make Money with Your Own Referral Service Business

There are many different referral services you can run, either as a stand-alone service or together with other types.

Here are some businesses you can specialize in: plumbers, hair salons, auto maintenance, child care, real estate agents, travel agents, lawyers, dentists, musicians and DJ's, printers, restaurants, even house sitters. Basically, any high-competition business will appreciate a referral service.

How can you make money? If you provide the service free to consumers, you can either charge a monthly or annual fee to business listed with your service, or you can collect a commission on each successful referral. Or, depending on the type of service you run, you can charge the consumer. For instance, if you are running a roommate referral service, both parties (the searcher and the potential roommate) can be charged a fee.

This business will be a lot easier to run if you have a computer, but it's not totally necessary. If you do have a computer, you can use a database program to store information on the businesses or people you have listed. If you aren't using a computer, you can keep the information in a 3 x 5 card file. Otherwise, all you'll need to start are business cards, stationery, and a business phone. Identify the types of businesses you'll keep information on, then develop a survey geared toward the type of the business they're in. Ask what types of work they specialize in, what their average charge is, how long they've been in business, if they have customers who can give a testimonial for them (call these people and get their permission before you use their testimonial - also, try to make sure they're not just the businessperson's brother-in-law, that they're actual customers who can give a real opinion), and other pertinent information. Get these surveys out to each of the businesses in the categories you've selected, and keep their responses in your file.

Put together a flyer advertising your referral services. Then, distribute the flyers by: contacting your local "welcome wagon" service, offering them flyers to insert into their packages; posting them on grocery store and church bulletin boards; leaving them on car windshields in mall parking lots; posting them in laundry rooms at apartment buildings; and leaving them anywhere large groups of people will see them.

When a customer calls for a referral, give them the information you've collected from the businesses. They will appreciate not having to make three dozen calls in order to make an informed decision. The customer testimonials will help people make a good decision.

Keep in touch with the people you've given referrals to, so you can get their opinion on how the business did. If you get complaints from customers, drop the business from your files. If you get good recommendations, move them to the front of the list.

You will be offering a much-needed public service with this business. Stress to potential businesses that you can refer new customers to them, and they should be willing to pay commissions, or a subscription fee. Give it a try, and you can make a decent amount of money in the referral business!


Related Articles

All-Cruise Travel Club

Minimum Start-Up: $500 Average Start-UP: 10,000 Revenue: $25,000 - $250K Profits: $10,000/Month One Person Business: Yes

Couponing: How to Run an Easy and Profitable Business Selling Special Coupons

Look in your mailbox. What do you see almost every day? Coupons. Look in your newspaper. What do you see EVERY day? Coupons. It seems like coupons multiply like rabbits. Why? Prices are rising, unlike a majority of people's incomes.

The Boring Way to Become Wealthy

When some people think about becoming rich, they might imagine suddenly coming into a bunch of money. Maybe they'll win the lottery. Maybe a rich relative will die and leave a fortune to them. Or perhaps they'll suddenly make it as a famous actor. Planning to become wealthy this way is a non starter.

How to Sell Pine Cones

Ordinary pine cones, of any size, can be made to look almost exactly like tiny owls simply by adding "eyes" which can be purchased at any hobby or craft shop.

27 Service Businesses to Start Now

There are hundreds of opportunities in the service arena offering low-cost start-ups and high profit returns. Almost all can be run from home.

16 Ways You Can Make Money Collecting Things in Woods and on Beaches

16 Ways You Can Make Money Collecting Things in Woods and on Beaches

How to Give Away Magazines and Make Great Profits

People are always interested in saving money. If you can develop a product or service that will help them save, you are almost guaranteed success.

How to Make $50 Mailing 150 Envelopes

Order 5,000 3 x 6 commission circulars from your printer selling $1.00 items that you earn 50% commission on every order you receive. Have your name printed on them - it will save you hours of stamping time.

Big Profits In The Sign Fabrication Business

A few years ago it would have been foolish to even consider a sign business unless you were well qualified to hand paint letters and illustrations.

A Furniture Refinishing Business in Your Home

If you have a garage or work building and are willing to learn a craft, upholstering, re-upholstering and/or furniture refinishing would make an excellent home business.