Scam or not???

Alright, here is where I am at, I am starting out and after posting flyers everywhere and giving away free washes and such at community celebrations, I still have some customers but I’d like some more…so one night when I couldn’t sleep I thought of this. Say I detail someone’s car for $100, and then for every car that they bring me that I detail they get $5 back….so if they bring me 20 cars they get there detail for free and I will end up making $1,900….so here are my questions…

1) Have any of you tried something like that before??
2) Is it ethical??
3) Is it legal??
4) Could it be considered a pyramid scam??

This is referred to as a "Bird Dog" fee. Mostly used in the car business. Some states have laws against it. I live in NC, and I believe the state has a law against it however, I see stores all of the time with big signs inside promoting their program. I have never heard of anyone getting busted. I don`t believe there is any way it could be construed as a pyramid scheme.

It would be easier to just use a punch card or something. Kind of like how Subway gives you stamps that you can return for a free sandwich after so many stamps. I`ve found that it is really hard to keep track of referals unless you print up cards with the customer`s name on them and then sign them. For every card that someone else returns to you, you keep track of the customer who gave them the card. Its a pretty complicated system of tracking customers, but it can work if come up with a good enough system. I don`t think its unethical at all. Its smart business.

I started out much like you I asked 7 customers at the new car dealership where I was working at the time if they would be interested in having there car cleaned.....16 years later I am as busy as I want to be as I do this as a "moonlight" operation. I think if you give yourself a little time you will be ok. A satisfied customer will be your best advertisement. I did a car for a little old lady who played cards man did the phone ring

I offer a free car wash to the customers that I do full details on if they send me new biz. All I ask is that they mention where they got my name from. Its up to the customer to get the fre car wash this has worked quite well.

I agree with Warren. Be patient, do great work and you will be extremely busy in no time.

A referal program sounds like good business. I like The Fuzz`s idea of punching holes in a card like subway. This way you don`t give them money directly but towards detailing. This is a cool way to keep the interest up.