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Bird-dog restrictions. How do you get around them?

Mike Lauf

Feb 14, 2017
Waltham, MA
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It's no surprise that word of mouth referrals are some of the best leads a dealer can get. They close at a higher rate and usually faster, too. And there's no better way to try and solicit referrals than offering a referral bonus.

DealerRater recently added a new feature to help dealers get more referrals and track these leads more easily. If you're interested, you can read more about that here.

However, we've also started to hear from dealers whose states restrict against offering monetary referral bonuses, or "bird-dog" offers. As of now, I've heard from dealers in CA, TX, OH and WI. Do other states have similar restrictions? How have you gotten around them? One dealer I spoke to uses a point system - customers can accrue points through various interactions (including referrals) and then redeem their points for products at the dealership.

Who else has had to figure out clever ways to incent your customers to refer new business?
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Reactions: Jeff Kershner