Pay Affiliates Again When Their Customers Buy Again
Sometimes you introduce a customer to a friend who launches a business. That person pays you a commission as a courtesy, or because of the schedule. When the deal is over, you become disconnected, but the customer may buy from that company for years. The problem is that the company does not pay you a commission for that customer's subsequent purchases, and you are not benefiting anymore. Therefore, this will probably be the first and last customer you introduce to them. But if you receive a paycheque three months later with a note beside it saying you are paid a commission for the repurchasing of that customer, it will make you represent more customers.
This is what I mean by the smart method: constantly communicate with the intermediaries and give them a commission with every transaction, because it can cause that person to represent new customers to you continuously. In the new digital and online systems, whether public or private, it is possible to define a program that allows the customer to see whether the intermediary receives a commission or not. This way, no one feels cheated at the end.
Many companies use the same method as before. For instance, if you refer a driver to a taxi service company, you receive a sum of money, or you may bring a passenger there and get two free trips instead, and that is all. In the system we are talking about, however, the commission is continuous. The representer of customers receives a commission for what the customer buys later.
An important point is to decide what percentage of the profit is going to be distributed as commission. If you distribute all the money you receive as commission, there will be no profit left for you. This has nothing to do with the size of the company. The application programs and the profit level are the most significant things in this case.
If you pay only a small amount to customers' representatives, it will no longer be attractive for them to represent customers. For that, you need to develop another program.
The goal is to motivate people for word-of-mouth advertising. You are not supposed to depend on customers in this way, but you should provide incentives for them to represent more customers. Sometimes it becomes like an occupation for some customers, and at other times more interesting incentives may arise.
I have several servers in a hosting company, for instance, and I represent customers to them, and they give me a commission. As a customer, it is not very interesting for me to make money this way, but after a while, when I want to pay for the server, I realize that I do not need to pay anymore because of the privileges I have.