Referral schemes for trades that actually work

A referral scheme that works for a small trade firm is a habit: ask every happy customer at handover, make passing your number on easy, and thank the person who sent the work once the job is paid. A £50 to £100 thank-you per won job usually costs far less than bought leads. Don't ask for reviews in return, and don't bulk-text old customers without consent.

Why do referrals beat paid leads for a small firm?

Referred customers arrive already trusting you, and the only cost is the thank-you. Bought leads cost money whether you win them or not, and you compete with three or four other firms on each one.

About 8 of the 28 firms we spoke to on sales calls this year said they distrust their lead-gen spend: agencies at £300 to £750 a month, lead sites, ads, and in one case a lead partner taking half. Take a firm paying £1,200 to £1,800 a month for 60 leads. Here is how that compares with a referral thank-you.

The saving per job looks small. The bigger difference is risk: the lead spend goes out every month, while the thank-you is paid only when money has come in. Run your own numbers with the cost per lead guide, and see whether Checkatrade and lead sites are worth it before you cut anything.

When should you ask for a referral?

Ask when the customer has seen the finished work and before the final invoice is a memory. For a bathroom refit, that's the walk-round at handover. For a boiler swap, it's when you show them the controls and leave the paperwork.

Ask once, in person, then follow up with one message they can forward. Most people are happy to help and never think of it unless you ask. A second prompt a month later, when you send the guarantee or the first service reminder, catches the ones who meant to and forgot.

1. Ask at handover.

   "If you know anyone who needs similar work, I'd be grateful if you passed my number on." Keep it short.

2. Send the message the same day.

   Use the template below, so the customer has something to forward on WhatsApp.

3. Log where every enquiry came from.

   Ask each new customer "How did you hear about us?" and write the name down.

4. Thank the referrer when the new job is paid.

   A text, then the reward if you offer one.

5. Tell the referrer how it went.

   People keep referring when they hear their friend was looked after.

What should you offer as a thank-you?

Something modest, paid after the referred job is complete and paid for. Common choices are a £50 to £100 gift card, money off the referrer's next service, or a donation to a local club. Cash for a name that doesn't turn into work encourages junk referrals.

For other trades who send you work, such as a carpenter passing roofing jobs to a roofer, a reciprocal arrangement often matters more than money. One young roofer we work with, running six people on the tools in Buckinghamshire, now refers work to a carpenter and gets work back. If you do pay another business a referral fee, put it in writing and ask your accountant how to record it.

Never tie a reward to a review. Google's Business Profile rules say offering free or discounted goods or services in exchange for reviews is fake and misleading content and is strictly prohibited. Keep the referral thank-you and the review request as two separate things.

What are the rules on referral texts, emails and reviews?

Two sets of rules matter. The marketing rules (PECR) cover texts and emails you send to promote your business. Consumer law covers reviews.

In practice: message your own customers (soft opt-in applies to quote and job customers if you gave them an opt-out), and hand them your details to share as they see fit. Don't ask them for their friends' numbers so you can message them cold, and don't run a "forward this to five friends" campaign.

On reviews, the Competition and Markets Authority's guidance says incentivised reviews must be clearly labelled as incentivised and reflect the reviewer's real experience. Offering a discount for a five-star review, or a refund to change a bad one, is banned. Google goes further and bans incentives for reviews outright on Business Profiles. If you're unsure whether a scheme is lawful, ask a solicitor before you launch it.

How do you make referrals easy to pass on?

Give the customer one message with everything a friend needs: who you are, what you do, where you work and how to reach you. Most referrals now travel by WhatsApp, so write it to be forwarded.

Hi customer first name, thanks again for having us at street or job. If anyone you know needs type of work, e.g. a boiler service or a new bathroom, we'd be glad to help. You can pass this on:

Your business name, trade in towns you cover
Call or WhatsApp number
link to your Google Business Profile or website

If they mention your name and we do the job, we'll send you thank-you, e.g. a £50 gift card once it's finished. No obligation at all.

Reply STOP and we won't message you about this again.
Your name

Add a Google Business Profile link so the friend can see your reviews before they call. Google lets you create a link or QR code to request reviews; keep that request in a separate message so it can't look like part of the reward. More in the Google Business Profile guide.

What happens when the referral calls and nobody answers?

The referral is wasted. A referred customer expects a quicker reply than a stranger, and if you're on a roof when they ring, they may try the next name on the list. Reply the same day at the latest; see how fast to reply to an enquiry.

If most of your enquiries come in on WhatsApp and you get a lot of them, the risk is the call or message that slips through. Getting replies out quickly, even from a voice note in the van, matters as much as getting the referral in the first place.

How do you know if your referral scheme is working?

Count it. Each month, note how many enquiries came from referrals, how many you won, what they were worth and what you paid in thank-yous. After six months you'll know whether referrals out-earn your paid channels.

If referrals are a large share of your work, protect them: finish snagging promptly, and keep customers updated during the job. A client portal helps on longer builds. Commercial clients refer differently, through main contractors and approved lists; see LinkedIn for contractors.

Common questions