Barbara McAuliffe, Marketing and Communications
Consultant at Denehy Club Thinking Partners, posed this question to the group:

“Does anyone have a program in place to reward members for member referrals? If so, what programs have you had success with, and what were the results?”

“Most new member referrals come from members who have joined in the past five years—that is the group that should be targeted for referrals. Incentives get mixed reviews in my book, as it seems new member applications follow the economy; they go up when the economy is hot, and slow as the economy slows. The only exception is when there is a membership drive tied to a significant entrance-fee discount.”
—Martin Wale, General Manager, West Vancouver Yacht Club, West Vancouver, B.C., Canada

“I once ran a membership program where a specific amount of the initiation deposit was deferred for 90 days. If in that 90 days the new member referred another member, then the deferred amount was forgiven. I agree with what Martin stated, but would take it even further. A member is never as excited about their club as they are within the first 90 days, so it is up to us to capitalize on that. Encourage them to bring their friends to ‘show off’ their new club, and they will. ”
—Mike Connaughton, Director of Membership Sales,
3 Creek Ranch Golf Club, Jackson, Wyo.

“We actually tried something different—we gave the ‘reward’ to the incoming member. We found that a reward for a referral never drew interest; however, the reward reserved for the incoming member worked great!”
—Robert Reynolds, Club Manager,
Woodland Country Club, Carmel, Ind.

“The most productive referral program will always be high levels of member satisfaction. How current and how often are these measurements taken? This pulse will determine first how fertile the soil is. Second, while there has not yet been a mention, it is the degree of personalization in rewarding a specific member for their engagement that, over time, goes viral within a club. Lead harvesting can be driven by a blanket incentive to a degree, but effective long-term engagement of each member is driven by the application of personal knowledge and preferences in how you show your appreciation. The finest private clubs instill a sense of obligation through this approach.”
—Dave Short, CEO, Independent Business Advisor,
Savannah, Ga.