This is the act of transferring someone or something to another, the process of sending by reference. Referral business is a process of introducing someone (customer or business) to a business or services or products with the intention of making some percentage from the original sale of the refereed product.
There are many good things about this new business especially if the company that owns the business is dealing on irresistible products or services. It is in human nature to refer even without knowing it, without good referrals some business might not stand test of time. When humans refer without knowing it they lose chances of making a profit from the referral but when you refer and you’re fully aware of it they make some huge chunk from the act. For instance a guy with a nice haircut artistically designed by a good stylist can be approached by his colleague in the office to direct him to his stylist, the guy with all joy will give his colleague the address of his stylist or even offer to take him there personally, this same thing applies to ladies not just with hair do but with clothing and other necessary lifestyle materials. From the illustration what just transpired is called unpaid advertisement. My question now is what now you from doing what you normally do on daily basis and getting paid for it?
Great companies have discovered the power referral advertising produce as to compare to media advertisement and choose to adopt the two to push more sales though some prefer the former as is more persuasive and more targeted. Having seen this they choose to adopt referral advertising in their promotion plans as it comes in comes in various ways most especially with the power of digitization through mobile technology. This is where you see the likes of banks and other multinational companies adopting referral business module. What triggered my writing this article is that access bank Nigeria now run referral advertisement for uber taxi company, this is to tell you that referral business pays big time without stress, no qualifications needed and no kind of special training.
Still on the banking sector, in Nigeria almost all banks now have option for mobile top up in their mobile app, and also go to the extent of acquiring USSD code for easy top up by their customers. If you visit a bank now to run your normal transaction their employed staffs will be begging to use their mobile app for you recharge, use their USSD code to recharge, it seems they even make more money from USSD code recharge than mobile app recharge because they will be preaching that the latter is easier and more comfortable than the former.
It has been revealed that banks (good technology banks) make averagely 3million naira monthly from mobile top up alone and interswitch pockets over 3billion naira monthly from the same said transaction. In case you need an interpreter these two companies are simply making money just by referring customers for different telecommunication companies and getting some percentage.
It is normally said that humans can’t exist without relationship with another so also is business, you can now deduce that for a business to flourish it needs to relate with other businesses to gain support and good referrals. Business that supplements another grows faster than a loner business.
As big institutions like banks do not wish to phase out of business by embracing modern technology which they use for referrals don’t you think is a good business? And mind you another name for referral business is network marketing business meaning that banks and many multinational companies now network to survive. My advice to you is, to do a referral business find a good company that pays well even if you need to secure their franchise to be part of it, be sure the company is dealing on irresistible products and services like technology which will not need you to persuade people to patronize.