Who doesn’t love passive income? That’s a trick question. Obviously, we all do. With that in mind, who doesn’t love some referral-link income? Not only is this delicious income that you get by “doing nothing,” it’s a great feel-good example of giving back while getting back
Sounds amazing, right? Why are we not all doing this? Well, because it’s not as “do nothing” as one might think — but it’s 100% worth the effort. Let me explain.
Think of referral relationships — whether you’re the referrer or the referee — as opening a savings account with each other.
MENTORING IS PART OF THE REFERRAL GAME
If you are not utilizing referral programs, then you are missing out. However, while there are ways to make a comfortable income or significant supplement from referral programs, it is not exactly “passive.” It takes skill and work, or else you may end up angering others if you fail to follow up on promises of help after enticing folks to join. A bit of mentoring goes a long way, and that means doing more than just sending an occasional infographic or making a telegram group.
I could easily go on various social media platforms, recruit newbies with screenshots of income and promise them the world for signing up. I could have subs spam platforms with my referral link. But if I stop there, what good does that do? If my referrals are not earning, then I am not earning. If I help optimize their earnings, though, then my earnings go up. Their success is my success.
Let’s crunch some numbers, shall we? Let’s say I get 100 performers to sign up under my referral link. Then let’s say that, within three months, I have put the time in with each individual artist one-on-one and helped all 100 performers reach or surpass their goal of averaging $1,000 per month in income. That third month, what am I bringing in? Since there is now a whopping $100,000 total flowing to the platform under my refs, I get to keep 5% of that, which is a cool $5,000 monthly. Then, just to keep things simple, let’s say that my refs keep that average up for a full year. What am I bringing in before I pay my taxes? $60,000 USD — or, because I am Canadian, $76,921.20 CAD.
WHAT KIND OF ADVICE SHOULD YOU OFFER?
As a photographer, I can offer advice on various content genres and how to pull off a plethora of looks. As an award-nominated dominatrix, I can speak to the psychology behind the kinks and teach consent and safety, as well as speak in regard to the community. I am also a writer, so I can be of help with clip descriptions and photo captions. Being that I am Canadian, I can help other Canadians figure out their payment issues. I am also a mother, so I can speak to time optimization as well.
There are so many other things I could list here too, but you get the idea. The above list actually proves my point: I can and do teach my referrals a lot because I can offer a lot. So just take a look at your own hobbies, passions, knowledge specialties, etc. to see what kinds of expertise you can bring to the table in uplifting your newly signed-up creator colleagues.
BE SELECTIVE AND COMMUNICATE
Ask yourself this before handing your referral link out to anyone and everyone: Is so-and-so worth your time? Meaning, you are going to have to put the time in to support this new creator at the beginning. Is this time going to pay dividends later? I recommend having a conversation with anyone you are about to coach before you begin. After all, they are also taking a risk by investing their time and potential income in you and your referred platform. Make sure to get on the same page beforehand.
To summarize, my main advice is this: Shop around, communicate and be transparent. Think of referral relationships — whether you’re the referrer or the referee — as opening a savings account with each other. Find someone who offers the best return on what you are willing and/or able to put in. You are earning your 5% by guiding others and helping them earn. Find a way to make it so you both win!
Cindy Partridge is a contributing model coach at Loyalfans. For more information, visit Loyalfans.com/creators and @realloyalfans on Twitter.
