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Scrap the referral scheme?

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Scrap the referral scheme?

Might be a touch controversial this, but not intended to antogonise anyone...

The current referral scheme is very generous to the customer giving a 50p/month discount = £6.00 a year lost by Plusnet. Many people will have multiple discounts and so the revenue lost is significant. If somebody is on BB Plus and manages say 10 referrals it is getting close to the point where Plusnet is making a loss on that customer irrespective of their usage.

Maybe it's time to revamp the referral scheme and make it a one-off discount or get rid of it all together and use the regained revenue to pay for more Central capacity. Even if the money gained isn't enough to light up another pipe it must affect the profitability of the broadband service and hence the positioning of the limits.

From experience, most people recommend an ISP to friends / colleauges based on quality and value of service, not because they can save themselves some money.
9 REPLIES
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Scrap the referral scheme?

Plusnet don't advertise they get a lot of their revenue through the referral code system . Its a very cheap way to advertises on many web sites and word of mouth . Your idea would mean they pay more to get there name around in monthly magazine and web adverts , that will have no benefit to the likes of you and me .
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Scrap the referral scheme?

The view could also be taken that the referral scheme means Plus Net do not have to worry about an advertising budget. The customers that are referred generate income that would not have been available otherwise. Its swings and roundabouts.

For people like me the referral scheme is a great idea. We need to recommend a reliable supplier for our clients. Plus net provide this reliability along with a sweetner for our efforts.

It has been a success story for Plus Net and customers for years and I most certainly hope it remains.
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Scrap the referral scheme?

well they've got a few clients from me, and i save 75p a month for refering.

the thing is that even if i get free and introdcue enuf customers to cover the freeness of my connection, tehre profits are still up.
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Scrap the referral scheme?

In terms of web based advertising affiliate / referral schemes usually bring in a notoriously poor rate of returm.

I agree advertising in magazines, television, radio, newspapers have very low ROI's (targetted web and email based marketing have much higher ROI's).


Does the fact you get a referral fee affect you recommending Plusnet as an ISP?
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Scrap the referral scheme?

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Does the fact you get a referral fee affect you recommending Plusnet as an ISP?


No. We have not referred clients to Plus net for a while because my company's confidence in Plus Net as an ISP has been somewhat dented of late.

The other key personell within the company made that decision some time back.

We have connected our clients to BT recently but hope that situation will change soon.

We will only recommend an ISP if we have faith in the product and the level of support provided.
Community Veteran
Posts: 4,729
Registered: 04-04-2007

Scrap the referral scheme?

Quote
No. We have not referred clients to Plus net for a while because my company's confidence in Plus Net as an ISP has been somewhat dented of late.
<snip>
We will only recommend an ISP if we have faith in the product and the level of support provided.


I second that, I personally have stopped word of mouth recommendations.
On Friday I was asked which ISP I am with, and would I recommend them.
By the time I had finished my balanced referral of Plus.Net, they decided to stay with AOL !!!

The biggest thing that puts me off referring Plus.Net at present is the free, sorry deferred connection charge, which sits there waiting to bite should you wish to leave within 5 years. When other ISP’s are able to offer truly free connection, it’s hard to recommend Plus.Net.

Also their quarterly change in terms and conditions does not help.

Chilly
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Scrap the referral scheme?

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Plusnet don't advertise


This is a common misbelief, one that PlusNet seems keen to keep alive, however PlusNet do indeed advertise.
They have full page adverts in Computer Active from time to time, there maybe others, I dont Know.
I guess the nature of said magazine implies that PlusNet are after signing up newcomers to the internet. I don't know the cost of advertising in magazines but £6 a year in referral fees for one account appears to be pretty poor value for an ISP, but may be cost effective compared to other means.
Metalguru
Grafter
Posts: 791
Registered: 04-08-2007

Scrap the referral scheme?

The less you advertise, the less chance you have of falling foul of the ASA.
Community Veteran
Posts: 5,878
Registered: 04-04-2007

Scrap the referral scheme?

I agree PlusNet do advertise, they sponser Sheffield Wednesday for example. Although word of mouth and refferals will still make the vast majority of new signups I'm sure.

I don't think PlusNet would consider such a plan and and personally I'd be against it. My usage is low and I'd rather have a slightly slower service and get a rebate every month than pay full price and get it any faster.

Chris