The easiest money you’ll ever make...
All you have to do is recommend deals to friends and family – and you too can make £800 in rewards
COMPANIES sometimes pay existing customers who help to recruit new ones, writes LAURA SHANNON. The bonus is handed over when a customer can prove their personal recommendation convinced someone else to buy. Those making the most of refer-a-friend deals are earning small fortunes. Here, The Mail on Sunday looks at the rising trend of ‘referral marketing’ and explains how you can join in.
FREELANCE photographer Tantse Walter has made nearly £ 800 in two years simply from recommending deals to friends and family. This financial boost means she has already covered the cost of a fortnight’s accommodation for a holiday to Columbia later this year – and has some money left over.
Tantse, 28, who lives with husband Dave in Cheltenham, says: ‘ It is very easy, so why not do it? Most companies have a refer-a-friend scheme because it benefits them as much as it does the customer.’
By referring friends to companies she has earned money from energy supplier Bulb, travel website booking.com, online supermarket Ocado, Virgin Media – and even a month’s free membership at a local gym.
Tantse says her friends are supportive of her making money this way – especially when there is also something in it for them.
For example, Bulb electricity pays £50 to new joiners as well as the customer who made the introduction.
Tantse says she always makes an effort to support friends in making money from referral schemes, adding: ‘If I am ever looking to join a company I always ask if any of my friends have a referral code, so they can benefit from it in the same way I would when I offer a code to them.’
Friend- referral etiquette also demands honesty. Tantse says: ‘I would not refer anyone to a company just for the sake of getting a financial reward.’
Why firms are using the ‘refer-a-friend’ schemes
REFERRAL marketing is a tactic sold on the basis of a win-win – the company wins new business and a happy customer wins a reward for little effort.
So someone who is likely to talk positively to those around them about a favourite business should consider whether there is a slice of revenue available to them for their informal marketing services. Adam Bullock, director at shopping website TopCashback, says: ‘Companies know the importance of word-ofmouth recommendations – and are willing to pay for them.’
While celebrities are often paid big money to promote brands, businesses know that referrals from customers to their friends are just as valuable.
This form of promotion is transparent because those buying recommended deals know the person who introduced them, how they truly feel about a product and what perk their friend is receiving in return.
Bullock adds: ‘Most brands have some form of friend referral scheme that gives you something in return for bringing them new customers, whether it is free products or cash.
‘Check with any service you use, such as your bank or insurance provider, to see what they are offering as you could make some unexpected money.’ Typically you are given an online referral link to share with your nearest and dearest. When they click on the link to sign up themselves, it tells the company how a new customer arrived at their doorstep.
Alternatively you might be given a code that a new customer needs to enter online when they buy.
Companies offering pounds for praise
THERE are numerous companies offering friend referral schemes, covering everything from fashion and fitness to bills and food.
BANKING AND FINANCE BANKS paying for recommendations include Nationwide Building Society, HSBC and First Direct.
Nationwide pays £100 per friend, up to a maximum of £500 each tax year. Customers recommending HSBC’s Expat account can also share £200 with their friend while First Direct pays £50 as well as a ‘hello’ gift to the new joiner.
Digital current account provider Monese will also pay £10 per person referred – £5 to the newbie.
Vanquis – which offers a credit card that can help customers build a better record of borrowing and repaying on time – pays £25 for each referral.
American Express credit card customers can earn membership points, Avios points or cashback for recruiting others. The perk paid depends on the type of credit card.
Prepaid travel card provider WeSwap pays up to £10 each for existing customers and their peers. Customers who bring three friends on board can also get ‘free’ foreign currency exchange for life.
COMMUNICATIONS MOBILE companies BT Mobile and Three pay £25 Amazon gift cards to both customers and their friends.
Sign up someone new to Sky TV and you will both receive a £50 pre- paid Mastercard while Virgin Media will give each of you a £50 bill discount.
ENERGY OVO pays a £25 voucher – Amazon, M&S or Argos – to each customer, old and new. Bulb pays £50 to both parties.
ONLINE SHOPPING WHEN people shop online via the likes of TopCashback or Quidco they can get a percentage of what they spend back in their accounts.
These companies link through to the websites of well-known companies selling anything from fashion to insurance. They act like a friend making a referral – but pay the bonuses to their customers.
But you can also earn extra from referring the cashback websites themselves – with TopCashback paying up to £7.50 and Quidco £20 for each person creating and using a new account.
WHAT HAPPENS IF YOU DO NOT GET THE CREDIT? THERE will be hoops to jump through to ensure you are paid for the referral scheme promised. For example, both parties are likely to need an email address.
A new joiner will also have to provide any appropriate loyalty codes. These will i dentify t he existing customer when they sign online. They must ensure to click on the correct links provided in an email.