Safire

[Black Bart]

What was that question you were askin' a while back about rebates or references and the price of tax returns? I was interested in that too. Thanks.

[Safire]

Sorry Bart

Bart, I apologize for not answering sooner, I haven't been on here in a few days.

I think I was asking if anyone had tried offering a rebate for referrals.

I was thinking of offering a $5 rebate, or commission for every new client referral this season. In my mind, this way if someone wants to lower their overall fee, they can do so by sending me more clients.

My idea was to offer them as many business cards as they wanted to take and have them write their name on the back or just put a mailing label on back and for every one that a new clent brought back in, I would pay them $5 at the end of tax season.

[Black Bart]

Referrals

That sounds like a pretty good idea--putting them on the back of your business cards. I tried something like that several years ago (don't remember exactly how I did it), but, as I recall, it did not get many customers for me. Hopefully, yours will work out better. I wondered if maybe it was just my locale and whether or not results would improve in a different neighborhood or environment.

I also once tried H&R Block's ploy of offering a free first tax return preparation for graduating high school seniors. I got a list of seniors from the school and sent them all a coupon. I got quite a few takers on that one (the '"free" angle I suppose) and was encouraged about it. However, only a small number of them returned the second year. I believe their parents had their taxes done elsewhere and they followed. That's a pretty common thing--for parents to direct their kids to their regular tax preparer.

Although it didn't work for me, it might be worth a one-season trial shot for you. Reason I was so interested is I've noticed that people tend to stay with what's familiar. If a first-timer tries a preparer and has no problems (usually don't), there's about a 2/3 chance (barring parental influence) that they'll become a permanent good, steady, "bread and butter" client. That's a good chunk of customer time and business if the senior stays in town.

Regards & good luck--BB

[Safire]

Thanks

Thanks Bart, I will let you know if it works out.

[taxmandan]

I think I was asking if anyone had tried offering a rebate for referrals.

I was thinking of offering a $5 rebate, or commission for every new client referral this season. In my mind, this way if someone wants to lower their overall fee, they can do so by sending me more clients.

Depends on your clientele. If you have low income, eitc types who are price shoppers this can be effective. My software provides for printing referral coupons and I give them to clients who come in during January and early February. If your clients have complex returns, with Sch. B, D, E or F it doesn't have much impact. They are usually looking for professional service not lowest price or discounts.

I think that $5 is too little to motivate the client to make a referral. I offer $10 rebate for each new client and have been thinking of raising it to $15 since my fees are rising. overall.

[Safire]

Thanks

Thanks for the imput Dan. The $10 might be a better offer. I will give that some thought before the busy season hits.