Tesla Motors announced the renewal of its $1,000 referral program for the Model S for 2 more months after the end of the first trial period on October 31. It’s fair to say that the program was a success with a single Model S owner selling 100 cars in only 3 months and hundreds of top referrers selling several thousand vehicles.
In an email to Model S owners today, Tesla CEO Elon Musk confirmed the company’s new referral program “seems to be working” and they are removing the 10-referral limit. More than 9 Model S owners have already referred 10 or more leads which turned into sales.
The company is also adding one more reward to the program. Now not only the first owners to get to 10 referrals in each region (North America, Asia and Europe) will get a free Model X, but the customer who makes the most referrals by the end of the program in October will be able to trade their current Model S for a brand new fully loaded Ludicrous P90D Model S for free. Expand Expanding Close
“At this point we can only speculate about what could be Tesla’s “secret weapon”, but here’s an idea: a reward program for Model S owners who are generating leads and offering test drives. SolarCity, which could be considered Tesla’s sister company, found success with their “Solar Ambassador Program“. People can sign up to an app and submit leads to SolarCity. If a lead turns into a sale, the “solar ambassador” receives $250. Tesla could implement a similar program with their current Model S owners. Tesla is known to have a very enthusiast and knowledgeable customer base. Owners in regions where Tesla is not allowed to sell directly could offer test drives to potential customers, talk about their experience with the car and then maybe submit a lead to Tesla in a similar manner as SolarCity does with their program.”
Some more details:
Anyone who orders a new Model S before September 30 using the referral link of a current owner will get $1,000 off the purchase price. In return, the current owner will get a $1,000 discount that can be applied to a new car, service center visit or accessories.
Referral discounts are limited to ten and are awarded on a first to purchase basis. New orders must be placed prior to September 30, 2015.
This really should spur both sales and salesmanship amongst current owners. It will also spur debate on whether Tesla owners really love their cars or they just want to make a quick $1000 (both!).