Question about referral partnerships. We are star...
# ask-a-growth-question
Question about referral partnerships. We are starting a referral relationship with a new partner. I'm planning on paying a referral fee at 2x MRR, which is what I've seen at other SaaS providers. The referral is really coming from individuals at the partner company, so I'd like to also incentive the consultants directly. I've seen this in other businesses but it's always a little murky on whether it's okay to incentivize individuals vs. only compensating the company. Any advice on how to approach this? I'm thinking 2x MRR to the company ($2K to $10K) and a swag kit + $500 to the individual.
Hey @Michael, I can’t give advice directly to your question because I have never incentivised an individual directly with cash in a partnership relationship. But a question I would consider is “What does that individual care about?“. There is likely more of an incentive to refer your product purely based on their KPI’s at work. For example, does referring your product help them win a deal with a new client? Maybe their KPI is revenue won.
Thanks @Jono Kingwill The partners' consultants have large projects, and they'd recommend using our company to solve 1 piece of a much bigger project. Overall, they're trying to help their clients be successful, which probably corresponds to a customer feedback KPI. At a former company, there was a partner who gave bottles of whisky to salespeople that referred business and didn't give anything to corporate. I'd prefer that model, but I imagine it wouldn't go over well.
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Hey check out and speak to Joran