How to Set Up a Referral Program That Gets You More Tradie Jobs

The truth about tradie marketing:

Word-of-mouth is still the #1 way Kiwis find tradies.

But most tradies wait passively for referrals. Big mistake.

The best tradies have a system that turns every happy customer into a sales rep.

In this guide, you'll learn exactly how to set up a referral program that consistently brings in new jobs.

Why Referral Programs Work for Tradies

The numbers don't lie:

• 84% of Kiwis trust recommendations from people they know
• Referred customers are 18% more loyal than others
• Referred customers spend 13% more on average
• Your cost to acquire them: $0-50 vs $200-500 for advertising

The Problem with "Organic" Referrals

What most tradies do:

"I do good work. People will naturally refer me."

Why that fails:

People forget. Even your happiest customers won't think to refer you unless:

1. Someone specifically asks them for a tradie recommendation
2. It happens to come up in conversation
3. They remember your name

How to Structure Your Referral Incentive

Option 1: Discount for Both (Most Popular)

The offer: "Refer a friend, you both get 10% off your next job"

Why it works:

• Both parties benefit
• Easy to explain
• Low barrier to entry

Sarah refers Mike the Plumber to her neighbor Tom.

• Tom books a $800 job → Pays $720 (10% off)
• Sarah's next job → Gets 10% off

Option 2: Cash Reward

The offer: "Refer a customer, get $50 cash when they book"

Why it works:

• Immediate tangible reward
• Cash is universal motivation
• Easy to track

• Higher ticket jobs ($1,000+)
• Commercial clients
• When margins support it

Option 3: Free Service/Upgrade

The offer: "Refer 3 customers, get your next service call free"

Why it works:

• Creates ongoing referral behavior
• Doesn't cost you cash
• Builds long-term loyalty

The Simple 3-Step Referral System

Step 1: Ask at the Right Time

When to ask for referrals:

Immediately after finishing the job: "Glad you're happy with the work! By the way, if you know anyone who needs [your service], I'd really appreciate the referral. I'll give you both 10% off."

Why this timing works:

• Customer is thrilled with your work
• Quality is fresh in their mind
• They're in a positive mood

Subject: Quick favor?

Hi [Name],

Hope the [work you did] is still working perfectly!

If you're happy with the work, would you mind referring me to anyone who might need [your service]?

As a thank you, I'll give you both 10% off your next jobs.

Just have them mention your name when they call.

Cheers, [Your Name] [Phone Number]

Step 2: Make It Easy to Refer

Problem: "Sure, I'll refer you" → Never happens

Why: They forget your number, can't find your card, don't know what to tell their friend.

Solution: Give Them Tools

#### Referral Tool 1: Business Cards

Give every customer 3 business cards when you finish:

"Here are a few extra cards - if you know anyone who needs [your service], just pass one along. You'll both get 10% off."

Why this works:

• Physical reminder
• Easy to hand over
• Makes customer feel valued

Use Paymate's customer capture forms:

1. Create a unique referral link: 'paymate.pro/quote/your-business?ref=sarah'
2. Send it to Sarah
3. When her friend fills out the form, you know it came from Sarah
4. Apply 10% discount automatically

• Trackable
• Easy to share via text/Facebook
• Professional

Leave a branded fridge magnet with:

• Your contact details
• "Refer a friend, you both save 10%"

Step 3: Track and Reward Referrals

The system that prevents "Oh, I forgot to apply your discount":

Manual tracking (start here):

Create a simple spreadsheet:

1. Apply their 10% discount
2. Note in spreadsheet
3. Send thank you text to referrer: "Thanks for referring Tom! Your 10% off is ready for your next job. Just mention this text when you book."

Use Paymate to:

• Track which customer referred whom
• Automatically apply discounts
• Send thank you emails to referrers

Referral Program Templates You Can Use Today

Template 1: The Thank You Card + Referral Ask

Physical card left after every job:

[Your Business Logo]

Thanks for choosing [Business Name]!

LOVE OUR WORK? Refer a friend and you'll BOTH get 10% off your next job.

Just have them mention your name when they call: 📞 [Your Phone Number]

OR share this link: 🔗 [Your Paymate Referral Link]

• [Your Name]

Template 2: The Email Follow-Up

Send 7 days after completing the job:

Subject: Thank you + a favor?

Hi [Name],

Just wanted to check in - is everything still working great with the [work you did]?

I'm building my business through word-of-mouth, and I'd love your help.

If you know anyone who needs [your service], I'd really appreciate the referral.

Special offer for you: Refer someone and you'll BOTH get 10% off your next jobs.

Just have them mention your name when they call 021 XXX XXX.

Thanks for your support!

[Your Name] [Business Name]

Template 3: The Facebook Post Template

Send this to happy customers and ask them to post:

Hey [Name], would you mind posting this on your Facebook?

"Just had [Business Name] come out to fix my [issue].

Super professional, on time, and reasonable price. Highly recommend!

If you need a [your trade], call [Your Name] on 021 XXX XXX.

Mention my name and you'll both get 10% off!"

Makes it super easy for them. Copy, paste, post, done.

How to Supercharge Your Referral Program

Strategy 1: Tiered Rewards

Encourage multiple referrals:

• 1 referral → 10% off next job
• 3 referrals → 20% off next job
• 5 referrals → 1 free service call (up to $200 value)

Strategy 2: Limited-Time Referral Bonuses

Create urgency:

"This month only: Refer a friend and get $100 cash (normally $50)"

Why this works:

• Creates FOMO (fear of missing out)
• Pushes fence-sitters to act
• Generates short-term boost

• Slow months (e.g., December)
• When you have capacity
• Launching your referral program

Strategy 3: VIP Referral Club

For your best referrers:

"You've referred 5+ customers. Welcome to our VIP Club:

• Priority booking
• 15% off all future jobs
• First access to special offers"

• Rewards your champions
• Creates status/exclusivity
• Encourages even more referrals

Real Tradie Referral Program Success Stories

Case Study 1: Dave's Electrical (Auckland)

The setup:

• Offer: "Refer a friend, both get 15% off"
• Left 5 business cards with every customer
• Added referral link to email signature

• 23 referrals from 60 customers (38% referral rate)
• Average job value: $650
• Total revenue from referrals: $14,950
• Cost: $2,243 in discounts + $100 in business cards
• Net gain: $12,607

Case Study 2: Sarah's Painting Services (Wellington)

The setup:

• Offer: "Refer 3 friends, get $300 off your next paint job"
• Followed up with every customer 2 weeks after job completion
• Sent a quarterly email to past customers

• 31 referrals from 45 customers (69% referral rate!)
• 8 customers hit the 3-referral mark
• Total referral revenue: $28,500
• 40% of her annual revenue came from referrals

Common Referral Program Mistakes

Mistake 1: Never Asking

Wrong: "If they want to refer me, they will" Right: "Would you mind referring me if you know anyone who needs [service]?"

Why: People need permission and a reminder

Mistake 2: Complicated Rules

Wrong: "Refer 3 customers who each spend $500+ and you'll get 20% off jobs over $1,000 booked on Tuesdays" Right: "Refer a friend, you both save 10%"

Why: Simple = more referrals

Mistake 3: Forgetting to Track

Wrong: Customer refers someone, you forget to apply discount, they feel betrayed Right: Track every referral, apply every discount, send thank you

Why: Trust is everything

Your 30-Day Referral Program Launch Plan

Week 1: Set Up Your Program

• [ ] Decide on your incentive (10% off is a safe start)
• [ ] Create referral tracking spreadsheet
• [ ] Order business cards with referral offer

• [ ] Write referral email template
• [ ] Create Paymate referral link
• [ ] Design thank you card/note to leave after jobs

• [ ] Email past customers about new referral program
• [ ] Call your top 10 happiest customers personally

• [ ] Ask for referrals at end of every job
• [ ] Leave business cards + thank you note
• [ ] Send follow-up email 1 week later

The Compounding Effect

Here's what happens when you systemize referrals:

Month 1:

• 10 customers → 2 referrals

• 30 customers → 8 referrals

• 60 customers → 20 referrals

• 120 customers → 50+ referrals
• Some of those referred customers also start referring
• Snowball effect begins

• 50% of your new business comes from referrals
• You spend less on ads
• Higher profit margins (lower customer acquisition cost)
• Better customers (pre-qualified by their friends)

Conclusion: Your Referral System Checklist

You need 4 things:

1. An incentive → "You both get 10% off"
2. A way to ask → End of job + follow-up email
3. Tools to make it easy → Business cards, referral links
4. A tracking system → Spreadsheet or Paymate

• Print business cards with your referral offer
• Create your referral email template
• Ask your next 3 customers for referrals

Want to automate your referral tracking? Paymate makes it easy to track which customers referred whom and automatically apply discounts.

Try Paymate Free →

Related Articles:

• Email Marketing for Tradies
• Get More Customer Reviews
• Local Networking: Build Referral Networks