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  • February 07, 2012, 03:55:15 AM
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Author Topic: Building the MA Business: Idea #1 - Refer A Friend  (Read 434 times)

Kelly Knight

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Building the MA Business: Idea #1 - Refer A Friend
« on: August 30, 2010, 07:16:36 PM »

As we begin one of the biggest times of growth for martial arts schools (especially serving young students), let's share some good ideas for bringing in newbies.

Topic #1: Refer A Friend

  • Business Cards with one or more weeks free for current students to give to friends
  • Prizes to students who bring in a friend (cash, swag)
  • Give free advertising swag to students to show their school pride to friends (bumper stickers, tshirts, magnets, posters)
  • Reward parents of students that bring in a friend to try a class (membership discounts, cash)

Do you have any good Refer A Friend ideas? Let's hear them!

Kelly Knight
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Keith Miller

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Re: Building the MA Business: Idea #1 - Refer A Friend
« Reply #1 on: August 31, 2010, 04:28:31 PM »

We have a Referral Program/Contest in place right now.

We call it our VIP Contest. Each person that comes in as a referral earns you 5 tickets. If they sign up, you earn 20 tickets. It takes 20 tickets to qualify for the VIP prize drawing.

These tickets are then placed in fish bowls, 1 bowl for kids and 1 bowl for adults. On Sept. 4th we are going to have a party/bbq and have the grand prize drawings.

I own a time share in Lake Tahoe, so I am giving away a free weekend there for the adult grand prize. This prize costs me nothing. For the kids...an iPod Touch costs about $200.

Food and drinks and jump house for the kids will run me about $500. That's a total of less than $1,000 for this promotion, and required no outside advertising.

The results with less than 1 week left in the contest? 
We have added 10 new students from referrals. That's revenue of about $900 per month extra. and over $11,000 worth of contracts. About $1500 in Pro-Shop sales, also.

So I spent about $1,000 to make 12K. That's smart business.
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Hock

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Re: Building the MA Business: Idea #1 - Refer A Friend
« Reply #2 on: August 31, 2010, 04:35:00 PM »

My chiropractor is doing the same thing!

He is giving away 2 tickets to the Thanksgiving Day, Cowboys vs Saints game. (I shall be in Holland that weekend, but would like to go) They assume all my friends are as busted up as I am.

He has a GIANT blow-up figure of Cowboys helmet in the open therapy floor. The fish bowl, etc.

Hock

Kelly Knight

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Re: Building the MA Business: Idea #1 - Refer A Friend
« Reply #3 on: August 31, 2010, 04:39:50 PM »

Keith,

Great idea and results!

Kelly Knight
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sarguy

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Re: Building the MA Business: Idea #1 - Refer A Friend
« Reply #4 on: August 31, 2010, 09:20:53 PM »

My chiropractor is doing the same thing!

He is giving away 2 tickets to the Thanksgiving Day, Cowboys vs Saints game. (I shall be in Holland that weekend, but would like to go) They assume all my friends are as busted up as I am.

He has a GIANT blow-up figure of Cowboys helmet in the open therapy floor. The fish bowl, etc.

Hock
Hell, the chiro might as well set up shop in the parking lot after the game.

Not to fear-monger, but a subtle increase in advertisement after some sort of violent
event featured in the news might also increase business. I'm NOT suggesting that any one MA school would have any or all answers that a concerned citizen might have about self defense and such, but if a potential client is curious and going to attend some classes, they might as well attend yours and not some LLAP-GOCH sham.

And don't forget Facebook ads! I hadn't given these much thought, but the other night on Coast to Coast AM the featured guest was the author David Kirkpatrick. He wrote a book on Facebook's pull as a social network. Apparently some ads are only "pay per click" and economical, and they have the advantage of being shown specifically to your target demographic. Kirkpatrick mentioned some business owners he met while writing the book claimed that Facebook was their sole source of advertising.

(I've paid attention to those ads in the past. The demos were right, but unfortunately they were for the "nearest" MA schools of a certain ilk, of which the closest was in Spokane, 2 hours away. )
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Kelly Knight

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Re: Building the MA Business: Idea #1 - Refer A Friend
« Reply #5 on: September 01, 2010, 06:50:34 AM »

Sarguy,

Interesting comments, thanks! You've got a couple of good ideas and comments going there. I don't have admin rights and I think it's worthwhile trying to keep the idea threads separate, so I've created another topic for "Online Advertising". I hope you don't mind. If you have additional thoughts on that particular subject, could you go to that thread? Thanks!

Kelly Knight
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Kelly Knight

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Re: Building the MA Business: Idea #1 - Refer A Friend
« Reply #6 on: September 01, 2010, 07:02:11 AM »

A couple of decisions must be made when running a Refer A Friend program:

  • If there is a reward, is it given right away? Is there an issue with delayed gratification?
  • How do you (or do you want to) alert other students to the example of one student referring a friend (who signs up) and then receives a prize? By limiting knowledge of the event, is there a loss in effectiveness?
  • How important truly are the size (or perceived value) of the prizes? This is especially a tricky one in an age of over-abundance. An iPod is going to be desired more in a lower income neighborhood...
  • It's worthwhile calculating the costs versus return.

In previous years, I offered a $50 bill to any student that referred a new student. I ended up taking my wife to dinner with it. The middle class kids that attend our school couldn't have cared less about fifty bucks.

Yet, when I gave away a $33 backpack with a Yin/Yang symbol on it...they went nuts! The uniqueness of the item seems to be an issue here.

Kelly Knight
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