Why referral compensation doesn’t work for services firms

The almighty referral. Every business salivates over referrals, especially professional services firms in which the sales pipeline beyond a few weeks is blurry.

Professional services firms covet referrals. The close rate is higher and the sales cycle is typically shorter. The endorsement of a trusted intermediary means a lot to a client searching for a professional services to engage with.

Many professional services firms try to generate more referrals and more consistently by offering to compensate…