Following our story that Elon Musk has begun cracking down on referral program abusers and will “shut down” the use of referral codes by non-friends, the company has issued an official email warning select Tesla owners that their referral codes will be deactivated if it’s not used in accordance to the company’s Referral Program Terms.
The email is in response to a tweet by station2station and addressed to Musk, asking the serial tech entrepreneur to do away with referral code abuse by YouTubers that are “hustling” their channels to gain referrals.
@station2stat @TeslaMotors Will shut that down. The point is to provide something special that only existing owners can give to friends and it is limited to 5 people.
— Elon Musk (@elonmusk) May 24, 2017
We initially called the motive behind the tweet as “sour grapes”, but station2station defends their argument that some Tesla-owning YouTubers are seemingly creating content to click-bait viewers into using their referral code. Something that we agree would cheapen the brand image of Tesla if true. However, many would argue that it’s a fine line between what’s perceived as acceptable referral code etiquette that’s used in “good faith”, and one that violates a loosely defined Tesla Referral Program Terms.
Adhering a vinyl sticker on the back of your Tesla that reads, “Ask me how I can help you save $1000 on a new Tesla” could certainly be viewed as cheapening Tesla’s brand, as station2station points out. But calling out YouTubers in a general sense, many of whom have brought immense value to the greater Tesla community, seems unnecessary.
Regardless, Tesla responded swiftly. The following email was sent by Tesla to some Model S and Model X-owning YouTubers.
From: “Tesla” <referralprogram@tesla.com>
Subject: Reminder: Referral Program Terms
Thank you for your participation in the Tesla Referral Program. Every referral you make helps to accelerate the world’s transition to sustainable energy, and we appreciate your support.
The intent of the program is to provide owners with something special to give to their friends. As such, commercializing, advertising, publishing, mass distributing, or selling referral codes is not appropriate.
We kindly ask that you remove your code from any broadly distributed channels. We will be deactivating any referral codes which do not comply with these guidelines.
Thank you for your continued support and understanding.
Best Regards,
The Tesla Team
We’re not certain what the future holds for Tesla’s Referral Program and how the company might be able to govern what’s deemed as right and wrong, on top of who’s considered a “friend” of a Tesla owner and who isn’t, but the Now You Know folks seem to have a great suggestion: tell me what my favorite color is and I’ll qualify you as a friend.
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Who is going to go out there and buy a Tesla without a referral code? Anyone looking into buying a Tesla will want the $1000 and free supercharging for life. What Tesla has to do is make the prizes less valuable because I would refer my friends for a coffee mug, hat and a jacket for 5 referrals.
TOTALLY agree.
I was an Apple advocate back in the days of Scully and Guy Kawasaki in 1995 when Apple had about 4% of the PC market share (because I was an Apple employee but also because I loved the product). I preached to everyone how it was a better platform. Eventually Apple swept the industry. I feel like those days are here again, with Tesla.
I'll sit on the curb by the Supercharger minding my own business, checking my email on my phone, and people come up all the time. It always starts with "Is that your Tesla?" The conversation begins with a few questions and on more than one occasion I've taken that total stranger for a quick spin. They always end up loving it. You can see the wheels turning in their heads. There is an intense pleasure is sharing the love. 45 minute conversations out of nowhere...and the time just flies.
I'd do this for a coffee mug, or a t-shirt. I'd do it for FREE. As an human being you want others to share in the same experience you felt when you realized how enjoyable something was.
The true YouTubers will continue to make videos even if the referral program one day goes away entirely. I saw it with Apple. The Mac Users Groups in each city such as DMUG, the rumor websites, the blogs. All done on a volunteer basis - there was no reward other than knowing something was simply better and wanting to share that understanding.
How many Teslas have Bjorn Nyland's videos sold? Must be hundreds, if not thousands. Even when the guy's car falls apart, he struggles to say anything bad about Tesla. Maybe they should find other ways to reward genuine V-loggers - or maybe the novelty has worn off. I don't have the cash for a Tesla but, so strong is the influence of Bjorn's videos, that I may order a Thai bride instead.
I no longer follow Bjorn because he deletes my comments on his YouTube videos.. and my opinion of him is that he is not fair nor accurate.. and wouldn't admit his free MX is a piece of crap if he had to scrap it from between his sneakers.. I think Sahil Malik gives a much more accurate picture of TESLA life..
Do you pay more attention to a friends recommendation, or a broadcast advertisement?
The Tesla referral prizes save hundreds of thousands, if not millions of dollars in advertising costs by using social media and referrals. They are the centerpiece of a complex advertising strategy.
Advertising professionals, who happen to be Tesla fans, were producing very high-end commercials on their own and throwing them out on places like YouTube, for years, before the contest... for free. Skilled people like to do what they do - and in the right circumstance, will give it away for free. Just do a video search for 'Tesla commercial'. Stunning how many good ones there are.
The Project Loveday fan commercial contest is case in point and comes along when Model 3 may change Telsa's customer demographic. Even with this contest, it only promises to officially promote the fan-made commercial of Tesla's social media channels. Again, limited exposure on Tesla's part.
Advertising is an ever-changing part of the business environment. Tesla has made extremely efficient use of cheaper tools.
Cudos Tesla!
Serge, you are overlooking a huge cost savings area for Tesla.
Do you pay more attention to a friends recommendation, or an advertisement?
The Tesla referral prizes save hundreds of thousands, if not millions of dollars in advertising costs by using social media and referrals.
The Loveday fan commercial contest is case in point. Fans were producing very high-end commercials on their own, for years, before the contest. Model 3 may change the customer demographic. So, the Loveday contest is dabbling into the traditional advertising market, with no expensive commitment on Tesla's part.
Advertising is an ever-changing part of the business environment. Tesla has made extremely efficient use of cheaper tools.
Cudos Tesla!
You missed the point. Suggesting Tesla offer cheaper prizes wasn't so Tesla can save money. It was to reign in the rabid referral kiddies that are salivating over every "referral gift" they can muster.
It reduces the clamoring, scheming, and hyper-selling.
What Elon understands and that these referral game players don't is that happy satisfied owners, like myself 3 times over, will go out of their way to show people the benefits and joys of owning the product. Not a day goes by where someone doesn't ask me about my Tesla - and often it turns into a 10 minute conversation and the person sitting in my driver seat. I don't need a mug, carry-on, kids mini-car, or anything else. In fact I was supposed to receive a Tesla carry-on 6 months ago and it never showed up. And I don't really care. A friend used my ref code and I used MY OWN ref code on Tesla #2 for our home. Somehow that earned me a carry-on. I don't really need it.
The modern referral program is more of a Thank You from Tesla rather than a "Sell, Sell, Sell" command issued from the top brass at Tesla. And this is how it should be.
And if you think that Daerik, Bjorn, and the other REAL enthusiastic YouTubers are going to stop making videos because the referral code program has been harnessed, you're mistaken.
