Marketing your NDIS business: what’s allowed, what’s not, and why it matters

Growing a business – whether it’s early days or a few years down the track – usually involves a lot of grit, plenty of heart, and a sprinkle of marketing magic. And if you’re offering services or supports to National Disability Insurance Scheme (NDIS) participants, you’ll want to get the magic part right.

That’s because Australian Government rules make it clear that certain marketing and referral practices – like inducements and kickbacks – are not allowed within the context of the NDIS.

Promising a gift card in exchange for a signed service agreement? Not ok.

Offering free sessions in a sign-up deal? You can’t do that.

And paying someone to refer you clients? Absolutely not.

The point of the rules is to make sure participants (and their families and trusted representatives) can make decisions based on what’s right for them, rather than feeling influenced by rewards, gifts or deals.

Some of the terminology in the rules may be unfamiliar to you, so we’re explaining what you can’t do, what you can, and why it matters. 

Providers can't offer or give an inducement

An inducement is something offered to encourage a person to choose, stay with, or use more of a provider's services.

An inducement could be things like:

• offering a gift card when someone signs a service agreement
• promising a free phone or tablet for becoming a client
• giving cash rewards for using your services
• offering prizes or benefits that encourage people to sign up or stay with a provider

The issue isn’t the value of the item or even what the item is, the concern is whether the offer is being used to influence a participant's decision. 

Providers can't offer or give a kickback

A kickback is a benefit someone receives in exchange for a referral or recommendation to a specific provider.

This kind of tactic is especially relevant for providers who have influence or authority over a participant’s NDIS plan, such as a support coordinator or an allied health professional.

Some examples of a kickback situation include:

• paying another provider to send participants to your business
• giving a worker a personal reward for directing participants to you
• giving gifts or financial benefits to an organisation in return for recommendations

The real concern with this tactic is that recommendations are not based solely on what’s best for the participant, and instead they’re based on how providers can leverage a participant’s NDIS funding.

What's common in other industries is not appropriate in the NDIS

It’s true that many other industries use inducements and kickbacks legally and successfully. Referral arrangements, loyalty programs, cashback offers, sales commissions, and referral bonuses are all part of the marketing mix for other businesses.

Whilst that may be so, you can’t use these tactics in the marketing plan for your NDIS business– in fact, it’ll get you cited by the NDIS Quality and Safeguards Commission and, depending on the seriousness of the situation, there could potentially be civil and criminal charges too.

In the NDIS, there’s a much stronger focus on uninfluenced participant choice, strong safeguarding of participants, and ethical conduct by all providers. 

Providers can create, network, sponsor and more

Now you know inducements and kickbacks are out, you may be wondering what’s in.

Each of these marketing activities will help people understand who you are and what you offer, and at the same time, allow them to make their own informed decisions:

• Creating a professional website
• Building a social media presence
• Sharing educational content and resources
• Attending community events and expos
• Sponsoring local initiatives
• Networking with other providers
• Asking satisfied clients for testimonials, where appropriate
• Offering merchandise, like hats or tote bags
• Explaining your experience, qualifications and service offerings
• Giving clear information about pricing and supports

What if a provider gets it wrong?

The new laws introduce significant penalties for providers who offer inducements or kickbacks that are intended to encourage people to use their services.

Penalties can include substantial fines, imprisonment, or both.

Even though inducements and kickbacks have never been accepted as part of marketing by providers in the NDIS, with recent legislation changes removing all doubt, now is the time to review your referral arrangements, marketing campaigns, and partnership agreements to make sure they comply with requirements.

Word of mouth is gold

No one is trying to stop providers from growing their businesses. Good providers should be able to promote their services, build professional relationships and explain the value they offer.

The most sustainable way to grow an NDIS business is still the same as it’s always been – provide quality supports, build trust, communicate clearly, and let your reputation speak for itself.