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“Do you smell that? That’s the smell of money.”

There’s nothing quite like it, especially in helping you to staff your telemarketing unit, and as they say, you have to spend money to make money.

But spend it in the right place.

To recruit and staff your room, it’s easy to throw away a lot of dough running ads in major newspapers and online. Some of this is necessary, but you should also try another tack.

There’s good news: you might be able to pare your recruiting expenses by providing incentives to your existing sellers to refer their pals and acquaintances.

Offer cash awards for bringing in friends who interview, are hired, and then who start work with you. A hundred dollars a shot is a pretty good incentive to use.

You can also consider a back-end incentive. If the referred employees stick with the job for a period of four or five months, and perform at minimal levels, the person who brought them in will be given an extra $200.

So, that’s $300, which isn’t much at all if you look at what’s wasted in hiring and training people who leave within a few days or weeks.

In your market, you may need to sweeten the pot a little more than this, making the spiff $500. Still, that’s cheap, if you can find someone who will produce for you, and stick around long enough to help you to build sales.

Dr. Gary S. Goodman, President of Customersatisfaction.com, is a popular keynote speaker, management consultant, and seminar leader and the best-selling author of 12 books, including Reach Out & Sell Someone® and Monitoring, Measuring & Managing Customer Service, and the audio program, “The Law of Large Numbers: How To Make Success Inevitable,” published by Nightingale-Conant. He is a frequent guest on radio and television, worldwide. A Ph.D. from USC’s Annenberg School, a Loyola lawyer, and an MBA from the Peter F. Drucker School at Claremont Graduate University, Gary offers programs through UCLA Extension and numerous universities, trade associations, and other organizations in the United States and abroad. He holds the rank of Shodan, 1st Degree Black Belt in Kenpo Karate. He is headquartered in Glendale, California, and he can be reached at (818) 243-7338 or at: gary@customersatisfaction.com.