I have been considering offering new clients a small gift, in the form of an M & S or similar gift voucher, to provide an incentive to join my firm.
Has anybody tried this method in obtaining more business as a bookkeeper or accoutant?
Also, just having a moment, can somebody confirm that the gift provided will not be taxable to the client too - i'm sure it's not as sky do it al the time!
you would seek a dispensation from HMRC so that you bear the tax liability in a similar way to employers bearing the tax liability of some gifts to empoyee's.
This approach does seem a little like paying people to be clients. And, as this is only to be a minimal token gift I am not seeing it building any client loyalty.
Would I go to an accountant that paid me to go to them? No, as it smacks of desperation
Would a better approach not be to follow the more traditional approach of offering incentives to those who introduce new clients (where such introduction results in accepting the client) perhaps via a fee reductions for the following period.
Also, in addition to payments to clients working for you as agents, if you are to offer an reduced rate incentive to the new client as well then you should offer the second year at a reduced rate, not the first as at leat that way you know that you will get two years work from the client and clients who have been through more than one cycle with you are more likely to stay.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I wouldnt offer anything to gain a client. At the end of the day the client would probably prefer a reduced fee rather than say £50 in M&S vouchers.
I offer a referral fee where if a client recommends a new client then the existing client get 10% of the first fee of the new client paid to them once the new client has paid their first fee. Already got a few addtional clients through this referral system.
There is another train of thought which says observe the masses and do the opposite. Many successful businesses have tried things differently from their competitors and the industry they are in as a whole.
If two businesses were offering the same service or product at the same price and one was offering me something free, I'd go with them. I think people are always looking for something extra for nothing. I constantly get leaflets from staples and Viking direct offering me freebies to place orders, as you say sky do it too.
How about something that will add value to your services instead of a voucher though. 2 month free payroll, or a free report to help them grow their business, a free piece of software?
I can't see how it would hurt to try, the worst that can happen is that it doesn't work.
