Module 3.5: Should You Pay for Intros and Referrals?

Note: This module includes a short multiple-choice question You’ll find the question at the top of this transcript and the correct answer at the very bottom. Read through the module first before scrolling down for the answer!

Question:

8. According to the module, which tier of referrals carries the highest level of trust?

           A) Tier 1: Organic Word-of-Mouth

           B) Tier 2: Willing if Asked

           C) Tier 3: Incentivized Referrals

           D) All tiers carry the same level of trust

Transcript:

Should you pay people for intros and referrals?

It’s a common question, and you’ll hear very different opinions. Some people argue you should always pay. Others say paying actually ruins the value of referrals.

The reality is somewhere in between.

At Commsor, we’ve identified three tiers of people who make intros and referrals. Each tier comes with a different level of trust and a different way to approach it.

Tier 1: Organic Word-of-Mouth
These are the people who make referrals without you asking and without expecting anything in return.

They’re in love with your product or service, and they can’t help but tell other people about it.

• Trust level: Highest. These referrals carry the most weight because they’re truly organic.
• Scalability: Lowest. You can’t directly control or manufacture them.

Tier 2: Willing if Asked
This group isn’t spending their day thinking about you, but if you ask, they’re happy to make an intro. They’re not expecting a reward, they just need you to do the work of identifying and making the ask.

• Trust level: Medium. Still strong, but slightly lower because you’re prompting it rather than it happening naturally.
• Scalability: Higher, because you can systematically ask people and expand the model.

Tier 3: Incentivized Referrals
This group will only make referrals if there’s a reward, financial or otherwise. Think influencers, affiliates, and certain partners.

• Trust level: Lowest. Paid referrals can sometimes feel less authentic, since the person might not actually use or know much about your product.
• Scalability: Highest. You can expand reach quickly by layering in incentives.
  
  

So, what’s the best approach? A strong Go-to-Network motion combines all three. There’s no one-size-fits-all answer.

But here’s the best practice: if you’re not seeing organic referrals, start there. Work on your offering until your customers are so successful they refer you without being asked. That’s the foundation.

From there, add Tier 2 by making clear, targeted asks. And finally, layer in Tier 3 with incentive-based programs to scale even further.

Answer:

8) A

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