Have you had people ask you for favours and then never do anything in return? How does that make you feel? If you do something for them uninvited you do not expect anything in return but of you are asked there seems to be a transaction under way.

Often businesses will ask for referrals but they either offer nothing or something that is unwanted (think about this when you offer a teenager a free guitar lesson that means nothing if the parents are paying so that needs to be offered to the parents. What you offer MUST have perceived value to the person who is receiving it that will make all the difference when it comes to referring other people to you.

How many bands do this when people get them gigs? Not many; getting a booking referral fee out of the blue of £100 could be a very powerful incentive for them to get you more.

I have a friend who comes to see me ONLY when he needs help getting work and although I am happy to help him he never returns my calls at other times when I leave messages about things that I am doing, only if it means he can get work out of it. Shame really because there is only so much that people will take, so be careful to make sure that you are not doing this.

For all the problems that money causes and I am the first the use other forms of transaction than money, trading time for time etc. money is a powerful transactional force which needs to be fully understood.

Remember that money as such is just an idea which we all agree on but as such it is imaginary especially now as it does not relate to the Gold Standard and numbers are just created by banks. However the idea is VERY powerful and that is what you are using, the idea of the transaction. If you are paying a lot for the referral you must value that transaction. If you offer £5 for every new referred pupil that will work against you but £25 to £50, that is substantial and it means that the referrer could earn a lot of money from those transactions if they get motivated.

Now if you think that is a lot of money stop for a moment and ask yourself how much money does a new client bring you over the lifetime of lessons, gigs etc.? Then think again about how much you are willing to pay!

So giving someone a book that they do not want to say ‘Thank You’ for a referral which could make you £400 to £1000 a year is an insult, and not offering anything but just asking is a travesty to any good will that you have with someone.

Be generous and it will be returned.

Vic