PPB June 2017

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In my promotional career I worked on the
distributor side for over 11 years before
joining the supplier side of the business. I
have honestly never seen a money-based
referral opportunity work in the long term
in any capacity. We are in the relationship
business and relationships that are
based on squeezing every angle for profit
and financial reward seem to cause
resentment, take time to track, foster zero
loyalty and limit the capacity of anyone
bringing real value to the overall end goal.
JEREMY RATCLIFF
Corporate Promotional Sales Manager
Craft Sportswear
PPAI 637932
I actually run a program encouraging my
clients to refer me for a gift. It’s a very ‘If
I’ve done a good job for you’ type of thing,
but it works. It’s called an incentive—to
do something more than normal.
The fee is a little different in that it’s
cash. But I would draw the comparison
to an ad agency bringing you their
client and asking for a remittance. It’s
appropriate in that case, and therefore
can be appropriate in private cases.
Howmuch? I wouldn’t do a percentage.
I would do what you think it’s worth.
Move from the “fee” idea, to appreciation;
from cash to gift. Howmuch is that
intro worth? A $100 gift card? A $500
gift card? In this case it’s a show of
appreciation, not a pay for play. Both
sides win.
WAYNE GREENBERG, MAS
President
JB of Florida, Inc./ A Division of Geiger
PPAI 106076
My Realtor clients often get and give
referral fees; however, in the 30-plus
years I’ve been in our industry, I’ve never
been involved with referrals from or to
other distributors. With that said, as I
understand referral fees in real estate, it is
a one-time fee, but in our industry giving
someone a referral is actually giving
them a client. That client could be with
the distributor for months or years. So,
with regard to referrals in this instance,
would the referral fee be based on the
first order only, or a fee for the entire time
of service?
RICHARD A. DEBIASO
Owner
Richard’s Promotional Products
PPAI 288701
I have paid referral fees over the years as
a general method to gain business. I have
never paid more than $25 unless there
was an implied agreement beforehand.
Obviously, you don’t pay it until the deal
is done and paid, and only pay based on
your margin, not the gross.
GLEN D. ELEY
Owner
Eley Imprinted Products
PPAI 279952
Absolutely not! If someone referred you
and your expertise to someone—that’s
why we’re in business!
Referrals are the golden fleece of our
sales industry.
GARY M. MURPHY, CAS
Owner/President
Image West
PPAI 103288
If a friend asked for a referral fee, tell him
you are going to take him and his wife out
to a fine dinner as soon as the account
pays their $500 bill. But, a true friend
would not ask or expect a fee for helping
a friend.
MIKE GORDON
Owner
Mike Gordon Promotionals
PPAI 695770
| JUNE 2017 | 13
INNOVATE
Do YouHave An Answer?
A Distributor Asks:
I’m considering sending out a customer satisfaction survey to get some
metrics for my business, to make sure I know about any issues or problems
clients have experienced, and to gather positive feedback for testimonials
on my website. For distributors who do these types of surveys, what kinds of
questions do you ask and what service do you use for the survey?
What’s Your Answer? Email answers along with your name, title and
company name by June 23 to for possible inclusion in an
upcoming issue of PPB magazine.
Julie Richie is an Austin, Texas-based writer
and former associate editor for PPB.