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How to FIX the Referral Program's Prizes!

Discussion in 'Tesla' started by BLKTSLA, Apr 12, 2017.

  1. BLKTSLA

    BLKTSLA Member

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    I've participated in the referral program since its inception, and while there are a lot of threads complaining about the program, my biggest issues are with the prizes, specifically the "Grand Prize"; the "raffle" to win a top of the line S or X. Many rounds have past and I don't think I know or have heard of any owner WINNING this raffle for the grand prize. Not only that we have no insight into the "raffle" or the winners which is discouraging to say the least. A person referring on average 3 people for the past 4 rounds with an average purchase price of ~$90k is ~$1M of profit to Tesla coming off of owners selling people on buying the car.

    That said, here is what I think Tesla can do to fix the Prizes to make them FAIR, and provide incentives for owners to continue to refer and contribute.

    1) Tesla Events - Please provide airfare and/or Hotel accommodations for qualified referral winners. To just provide "Admission" to an event isn't enough especially for those not near California, a simple set of economy ticket and hotel accommodations would suffice. Alternatively, a travel reimbursement/voucher would also be useful to making it feel like we've won something useful.

    2) Grand Prize - An amazing reason to continue to refer, but we need visibility into this. Please have a streaming event of a raffle like the lottery and allow us to see someone pull a referral code from a cylinder and see who the winner is. I think the referral code is ambiguous enough to maintain privacy for the winner while still showing that someone won. Also, please discontinue the "first to X number of referrals", this is a completely unfair approach as Youtuber's will easily win every time over the owner who gets out to his/her community and has to physically refer people they know.

    Lastly and most importantly PLEASE roll over referrals if you did NOT win! The people referring the most people over time should have a greater chance to win over someone who just bought the car. If each referral creates an entry then the people who have contributed the most should have the most ballots in the raffle and that will also encourage them to continue referring. The model 3 is going to add an order of magnitude to the volume of Tesla owners significantly decreasing the odds, so this approach will still allow John/Jane Doe who referred 5 people consistently in every round since 2016 to win the prize he/she has been chasing.

    **Another small request would be to provide an email copy of the rewards selected so that the owners have copies of what they chose. This would eliminate lots of emails from people (myself included) that chose for instance Grey Arachnids but received Silver and have not been able to reach anyone to resolve this.
     
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  2. Newscutter

    Newscutter Member

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    You missed one:

    DELIVER the prizes.
     
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  3. efusco

    efusco Moderator - Model S & X forums

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    Beggers can't be choosers, but I agree with the general concepts you put forth here. It is a major ordeal for me to get to the Tesla reveals/events, esp. when they're on a week night. Not only do I have to pay airfare, which isn't cheap and always requires at least one transfer, but I lose no less than 2 days of work and most likely 3. It could easily set me back $2000 to go to a couple hours long event where I may or may not get within 10 feet of Elon and get packed into a vehicle with 3 other people for a 30 second ride. I'd love to go sometime, but the cost and inconvenience is just not much of a "prize".

    I would love a bit more insight into who/when the drawing for the grand prize is done--perhaps they could make it such that you have to agree to let them use your name to be eligible or something. Draw a Top-5 and fly them out for the grand prize drawing so you'd at least get a factory tour, shake Elon's hand, and be there for the exciting moment. Make an event of it. And I agree with the roll-over of referrals...maybe up to a maximum. I know part of the issue here is that people are "gaming" the referral program and offering extras to people who use their code, leveraging social media, etc. I don't know how you strike that balance to keep the program 'pure' so that real advocates still have a chance at the best prizes.
     
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  4. BLKTSLA

    BLKTSLA Member

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    #4 BLKTSLA, Apr 12, 2017
    Last edited: Apr 12, 2017
    Absolutely, but I cannot speak to that personally as I have received all prizes due me.


    Great points and suggestions especially draw for top-5 and fly them out of final drawing! However, I wouldn't call anyone that finds qualified buyers for luxury automobiles a beggar, and therefore we definitely can and should be choosers. Some people may under estimate the amount of money and resources companies put into developing a sales funnel and qualifying buyers. This is a job that all Tesla reps know very well between follow up calls, emails, fielding questions, etc. Every one of us that refers a buyer is saving Tesla lots of money and making them money at the same time. That very reason is why I appreciated the credit system they offered initially because it showed direct value of that lead ($1k of Tesla credits). With these volume based referral rewards it does not and if you only get 2 referrals you get nothing yet you potentially saved them $2-$5k work of effort and made them potentially $180 - $300k in sales.
     
  5. Trips

    Trips Member

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    Tesla does not profit $180k-$300k on two cars. Yes, top line revenue might be that much but their profit is only $30k - $80k. Yes, they have given the cars away. There is another thread on here that lists some of the winners and includes some that have won multiple times.

    Think of this program as a Thank You as I am not aware of any auto company that does this. Would you tell your friends to not buy a Tesla if there was no prizes?
     
  6. BLKTSLA

    BLKTSLA Member

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    I'd love it if you could point me to that thread, and would like to see who's won multiple times!

    This is a thank you, but its also a very necessary action at this stage since they are relying heavily on word-of-mouth in lieu of marketing, and there is no better word-of-mouth other than existing owners. I wouldn't NOT tell someone to buy a Tesla but I definitely wouldn't go out of my way to expose someone to Tesla as I, and other have if there wasn't an incentive.
     
  7. MorrisonHiker

    MorrisonHiker S 90D 2017.28 c528869

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    There's a post in the other referral program thread by someone who met one of the car winners at the local Service Center. The winner chose to remain anonymous but did indicate that they had won the car with just one referral credit.
     
  8. efusco

    efusco Moderator - Model S & X forums

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    It's a balancing act, as I pointed out. Make the prizes too rich ($1000/referral as originally) and it breeds a culture where 'selling' referrals becomes a business in itself and becomes counter to the intent--which was to reward those of us who are advocates.

    Make the rewards too small and fewer of us get out there and actively solicit potential buyers.

    And we are, in a sense, beggars in this metaphor... Tesla offers something to the ambassadors, and we want more and more and we want it our way without much consideration for the complexities and downfalls that they must deal with. Sure, they get significant benefit, but that benefit is hard to measure. Has that $1000 off and our personal statements of our love really swayed that many sales? Or has it become more that people are aware they can get $1000 off and just hit Google to find a code in the majority of the cases? In which case, this program is costing Tesla more (by giving most sales $1000 off that they would other wise keep and make the sale anyway).

    But getting back to the OP's original statements...I do think there's room for improvement. I think you can keep the real advocates inspired to keep advocating with a more open process and with better awards. I think I've had 2 chances to go to a reveal event, but just could not financially justify either one for the reasons stated above.
     
  9. MP3Mike

    MP3Mike Active Member

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    @BLKTSLA No, that wouldn't be $1M of profit for Tesla, it would be ~$1M in gross revenue. If their gross profit for the cars is running at 25% then they would have made $270,000 in profit. But how many of those referrals would have bought even without your referral? I suspect a lot of them are just using the referrals for the $1,000 off, meaning you aren't adding as much profit as you think. (And may actually be costing profit.)
     
  10. f-stop

    f-stop Member

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    this isn't one of the raffle winners, but fyi here's a couple posts by the lucky guy who won the fully loaded P90DL for most referrals in North America, for the period ending Dec 2015. I'm surprised there didn't seem to be a more public announcement of this by Tesla

    OFFICIAL: I'm the winner of North-America referral program
    Winning a fully loaded Model S: Sharing delivery!

    while I've made 6 or 7 referrals in total, they've been spread across several referral program periods so I can only live vicariously through lucky guys like that and the rest of you :) (I did receive a duffel bag once, however)
     
  11. BLKTSLA

    BLKTSLA Member

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    @MP3Mike - I suppose we are all subject to our purview and experiences, but your statement is not applicable to my experience nor of a lot of owners I have come across. The owners I come across are vital to the people they refer buying the car, these are typically individuals who will not randomly walk into the showroom, and don't really care about the $1k off. They are interested in a person they know and trust informing them that Tesla is the way to go or the car to have, in which case they easily order the top of the line spec S/X and maybe multiple cars. The point being that these people and others I have referred would NOT have bought the car had I not educated them, fielded questions, and most importantly given them confidence to buy.

    I have heard quite a few people looking to for random referral codes, but at the end of the day how big of a deal is $1k off if you're spending $90k+ and you have taxes and dest fees?
     
  12. bonnie

    bonnie Oil is for sissies.

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    I hope someday to not care about $1000.
     
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  13. FlatSix911

    FlatSix911 918 Hybrid

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    Best post ever ... still waiting for a set of Arachnid wheels :cool:
     
  14. Tech_Guy

    Tech_Guy Ludicrous + you say, well I got Ludicrous -

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    Agreed I'm still waiting on a set of Arachnids and so is one of my Tesla friends...
     
  15. Sin/gas

    Sin/gas New Member

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    Waiting on wheels,bag and jacket
     
  16. Petra

    Petra Member

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    I guess the only real comment I have on the referral prizes is that a car is easily one of the worst prizes that could be offered.
     
  17. Newscutter

    Newscutter Member

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    I'm still missing a couple bags, but would happily trade them for a new S/X if someone wants to make the swap. I've heard the bags are VERY nice leather.

    Seriously though, other than having a link on my Twitter/Blog, I'm not bothering anymore... at least not until I've received prizes from last year. I suspect I had lost referrals too-- but because I don't personally know most of them I have no way to track them.
     

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