In the past, hiring someone would be a very personal experience. The applicant would see the advertisement posted on a board or in a newspaper, create a resume specifically for that position and then deliver it in person, or in the mail. Now, job hunts are primarily online. From the cheap alternative of posting positions on Craigslist, to advertising the role through Linked In, the internet is the perfect place to find a career. Advertising a position reaches a larger audience, and more viewers mean more applications and a larger pool of potential employees for you to choose from. However, there is a downside too. There will be hundreds, if not thousands, of responses- but many of these will be blanket emails, sent by one person to hundreds of applications, and a large portion will also be SPAM resumes. So now you have many more responses to your advertisements, but you have to wade through the hundreds to find the few acceptable resumes.

We are arriving at the birth of the Referral Economy.

Thankfully, times are changing. We are arriving at the birth of the Referral Economy. This new system sees people coming together to help employers find the right candidate, and job seekers find the perfect role for them. Using their social networks, trusted friends recommend their peers for a job position.

This movement in Referral Economy has already begun in the real estate realm, with the startup Circumrent changing the way apartments are listed and leased. Using Circumrent, renters are advertising that they are leaving their living space by sharing the news with their social network. Then, qualified renters see the news before anyone else and are able to make an offer to move in to the property. This way of renting saves fees for the landlord and the new tenants and also former tenant is paid a referral fee. Furthermore, this referral (business) reduces the time that buildings are vacant, by moving in the new tenants quickly.

We already have created a Referral Economy

It is clear to see the impact that Referral Economy has on the rental field, and this method of referring your contacts can be utilized in many different ways, across many different sectors. We already have created a Referral Economy, as we recommend products and services to our friends and associates via our social networks when we have had a favorable experience. So, if we are already making referrals and recommendations, why not get paid for them? Commissions for endorsements may be small, but they can grow into a nice little earner. There are also other ways that you can be rewarded for referring a client to a service- for example, many fitness studios will offer you at least one free class if you refer a friend to their classes. This way, your friend goes to a class where they already know someone, and you get compensated for bringing them!

This type of Referral Economy is sure to become and intrinsic part of the way we advertise services and invest in products. With so many options available to us, we do rely on recommendations from trusted peers. We look to blogs, social networks, comment and review sections to discover why we should choose the supplier or service, and in return, we then go on to share our own experiences with those around us.

Marketing and advertising has evolved..

In conclusion, marketing and advertising has evolved from trusting the word of the provider to putting our trust in the experience of those who have already utilized the service. We put our faith in the social butterflies of our networks, ignoring the persuasion of marketing and media to instead listen to the advice of our peers.

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