The Referral Ask That Turns 1 Roof Into 3

The cheapest lead you will ever buy is a referral. It closes at 40 to 60 percent versus 8 to 15 percent on cold knocks. The homeowner already trusts you through the referrer. The sales cycle is 3 days instead of 3 weeks. And yet most roofing reps never ask, because they feel awkward or they ask at the wrong moment. Fix the timing and the script and you will add 25 to 40 percent to your pipeline without adding a single canvasser.

The Three Timing Windows

Window 1: Day of Completion

The crew just finished. The homeowner is standing in the driveway staring at the new roof. This is peak emotion. Your ask:

Looks great, right? I love how this one turned out. While I have you, do you know anyone else on the street who had damage from that storm? I have been meaning to check in on the Johnson's house two doors down.

Notice the specific name. "Anyone on the street" gets you "I do not know." A specific named neighbor gets you "Actually yeah, let me text them for you."

Window 2: Day 7 Post-Completion

Text or email a week after:

Hi [Name], just checking in on how the roof looks after the first week. Also wanted to say thanks again. If you know anyone else dealing with storm damage, I take great care of referrals: flat $200 thank-you check on any roof we close through you.

Day 7 is when the homeowner is telling everyone about their new roof anyway. Make it easy for them to send business your way.

Window 3: After the Next Storm

This is the best one and the one most reps miss. When the next hail or wind event hits within 50 miles of the homeowner, text them:

Hey [Name], saw the storm on Tuesday. Wanted to check in on the roof, but also wanted to let you know I am working that area this week. If you think of anyone who might have damage feel free to send them my way.

Homeowners remember you because the storm reminds them they have a roof they care about.

The Yard Sign Conversion

Yard signs work. The data varies by market but healthy shops see roughly 1 referral per 5 yard signs in storm zones, and 1 per 15 signs in retail zones. The yard sign should:

• Stay up for 30 days minimum
• Include a QR code to a landing page, not just a phone number
• Have a simple message: "[Company] Roofed Your Neighbor - Free Inspection: [phone]"

Track which yard signs produce referrals. Reward homeowners who generate multiple leads from their sign with a bigger thank-you gift.

Referral Fee Structures

StructureProsCons Flat $100Simple, easy to budgetWeak motivation for big jobs Flat $200-300Sweet spot, motivates real effortCosts add up at scale $500 for signed dealsBig motivator, premium feelDisputes on what counts as referred Percentage of gross (1 to 3 percent)Scales with deal sizeTax/paperwork complexity Store credit or gift cardCheap for you, feels like a giftWeaker motivation for most

$200 flat on any signed deal is the current industry standard. Some shops scale it: $200 for the first referral, $300 for the second, $500 for the third in the same calendar year. This turns a good customer into a repeat referrer.

The Legal Side

Referral fees to unlicensed individuals are legal in most states for residential work as long as:

• The referrer is not acting as a salesperson or contractor
• The fee is disclosed in writing
• The fee is not structured as commission (avoid language like "percentage of sale")
• You issue a 1099 if fees exceed $600 to the same person in a year

Kickbacks to licensed adjusters or insurance agents are regulated and often illegal. Never pay an adjuster for a referral. It is bribery.

Systematizing It

Most shops lose referrals because the rep forgets to ask or the office forgets to pay. A simple system:

1. Every closed job generates a "referral ask" task at completion
2. Day 7 auto-text asks for referrals with opt-in link
3. Referral source is tracked on every new lead intake
4. Referral check is cut with the rep's commission check on closed referred deals
5. Monthly report of top referrers gets a handwritten thank-you card

In RoofKnockers you can tag leads with a referrer field and run a report that shows who sent you what. The office gets a daily list of referrers who earned a thank-you check that week.

Mistakes That Kill the Referral Engine

• Asking before the work is complete
• Asking a homeowner who had a rough install experience
• Paying the fee late (over 30 days after close)
• Making the referrer chase you for their check
• Not acknowledging the referral (at least a text: "got them scheduled, thanks again")
• Sending the same rep who annoyed the original homeowner

The 3x Math

A rep closing 30 deals per year without a referral system keeps doing 30 deals per year. A rep who pulls 1.5 referrals per satisfied customer at a 50 percent close rate adds 22 to 25 referred deals per year. That is 75 percent revenue growth from the same cold pipeline, with higher close rates and bigger deal sizes.

FAQ

When do I pay the referral fee?

When the referred deal is collected in full. Some shops pay on contract signing, which is riskier but feels better to the referrer. Either works if disclosed clearly.

What if the referrer is the adjuster or insurance agent?

Do not pay. In every state I know of, paying licensed insurance professionals for referrals violates anti-kickback rules. Build the relationship through quality work, not cash.

Can I give a discount instead of a check?

Yes but the current homeowner often prefers cash. Store credit works if you have a maintenance or repair division. Discounts on future work only if the homeowner plans to buy more from you.

What is a realistic referral rate?

Shops with an active referral system see 25 to 40 percent of new leads come from referrals. Shops without one see 5 to 10 percent. The difference is systematic asking and timely payment.