Hi....what do you guys feel about referrals?

I started off in my contract saying that I found referrals a huge compliment and would give any successful referral (where the referral signs) as a free day of daycare to the people who referred the new family.

Then I had a parent refer me and bring me a family/child that signed and I changed my mind and removed the whole clause from my contract. The family I signed was great but the child itself is a struggle and full of too much energy and is one that I sometimes wish I hadn't signed or could terminate. Part of the reason I feel stuck and that I did accept the child even though I had doubts after meeting the child were that I was worried about the referral and what the other mother would think if I rejected her referral.

Since that time I had an interview for a referral that did not go well. It was so awkward and then not hearing back was so awkward that the mother who referred me never mentioned it again and I never dared to ask her about it again. We both sort of pretend it didn't happen.

Now I have another mother who told me she has someone she wants to refer and I am not sure what to think. It is very nice if someone loves your daycare enough to recommend you but on the other hand what if you interview and it doesn't go well? What if they make comments to the parent you have or make them doubt your daycare to begin with?

The longer i am in business I find that BIGGER distances between clients is good. I like them to not be related to me, be my neighbours or live in my subdivision and slowly I am thinking that referrals may not be a good thing either. What if something happens with one family and then the second family leaves because they are loyal to each other??

Thoughts? Do you get referrals? Do you like them?