Everything You Need To Know About a Referral Program

Earning money online has never been easier than it is today. There are quite a few ways to earn money online, from taking surveys to completing offers to watching videos.

But one of the most simplest and lucrative ways to make money online is by joining referral programs.

By simply referring friends and family to sign up for these programs, you can earn a commission on their earnings.

In fact, according to Extole, When referred by a friend, a person is 4x more likely to make a purchase.

But what exactly is a referral program, and how do you find the best ones to join? Read on to find out.


Key Takeaways

  • A referral program is something that a company offers to their customers in the form of a reward for referring new customers to them.
  • The reward of the referral program can be in the form of cash bonuses, gift cards, or discounts on future purchases.
  •  The amount of money you make from referrals depends on the company and the program, but it can range anywhere from $5 to $300.
  • To find the best referral programs, look for legitimate companies, read their terms & conditions and compare programs.

Read: Pinecone Research Review

Also Read: Swagbucks Review

What Is a Referral Program?

What Is A Referral Program

A referral program is a program in which companies offer their customers rewards for referring new customers to them.

Typically, these rewards take the form of cash bonuses, gift cards, or discounts on future purchases.

To participate in a referral program, you need to find a company that offers one and then refer your friends or family members to it.

When they sign up and begin making purchases, you’ll earn a commission on their earnings.

Referral programs are an excellent earning opportunity and are often very easy to join. All you need is a referral link, which you can typically find on the company’s website.

Once you get your referral code or link, you can start sharing it with your friends and family.

When they sign up and make a purchase or complete a task, you’ll earn a commission.

The amount of money you make depends on the company and the program, but it can range anywhere from $5 to $300.

How Does it Work?

It is not always necessary that even your most loyal customer would refer your business to others owing to different reasons.

However, when you give your customers a reason to refer your brand in the form of rewards, then it is a different story.

Referrals allow you to track referral cards, referral codes, store credits, etc. It allows you to increase revenue, conversion rate, and even retention rate.

In fact, a referral system may end up creating an infinite cycle of word-of-mouth. 1

Finding the Best Referral Programs

Finding the Best Referral Programs

Now that you know more about referral programs, you’re probably wondering how to find the best ones to join. Here are a few tips:

1. Look For Legitimate Companies

The first thing you’ll want to do is to look for legitimate companies that offer referral programs.

There are many scam websites, so you’ll want to be sure that you’re only signing up for programs from reputable companies.

A great way to do this is to look for reviews of the company and the program before signing up.

You can also check Better Business Bureau reviews to see if there are any complaints against the company.

2. Read The Terms And Conditions

Before you sign up for any referral program, be sure to read the terms and conditions carefully.

Some programs may have limits on who can participate, and some may require you to complete specific tasks before you can start earning money.

Reading the fine print will help you avoid surprises down the road.

3. Do not Forget to Compare Programs

Once you’ve found a few referral programs you’re interested in, it’s time to compare them.

Look at the amount of money you can earn per referral, the restrictions on the program, and the payment method.

Also Read: How To Watch Out For Scam Paid Surveys Sites

Best Referral Programs of 2023

Here is a list of the best referral programs of 2023:

  1. Swagbucks: Offers 10% of your referral’s earnings
  2. Quip – $5 per referral
  3. Fiverr – Gives 10% of the referral’s first order
  4. Tesla – Offers $300 or $500 reward per referral
  5. T-Mobile – Gives $50 per referral
  6. Astra – Offers up to $375 per sale
  7. SoFi – Gives $20 in points per referral
  8. Zoho – Gives 15% commission on referral’s subscription fee
  9. GetResponse – $30 credit per referral
  10. Google Workspace – Gives $8 to $23 per user

Steps to Create a Referral Program

Steps to Create a Referral Program

Here is a step-by-step guide to creating a custom referral program for your brand:

1. Determine What’s Your goal?

The first step in creating a good referral program is knowing why you want to do so. Do you want a referral program to increase revenue or grow your business?

Do you want to take into account the retention rate? And so on. Once your objectives are clear, we can now move on to the next step.

2. Create a list of existing customers.

Now start creating a list of existing or ex-customers. These could be your relatives, friends, vendors, past customers, etc. These people will give you a solid footing to get started.

3. Think about what incentives you will offer.

The next step is to think about what kind of incentive you will offer. Cash offers might seem the most fitting to you to lure more customers.

However, according to a study, non-cash incentives are 24% more effective in a referral program.

So think about offering your customer something of great value, so they keep bringing in referrals for you.

4. Create an outreach plan.

Once you have a list of customers ready, now you need a customized outreach plan. A generalized strategy won’t work here.

You will have to customize your initial message regarding your referral program according to the people.

For example, you may not need to give rewards to your family or friends for sharing referrals.

Similarly, you may want to wait for your existing customer to make a second or third purchase before sending out referrals.

5. Spread the word.

Now think about which channel you want to use to start spreading the word with your customers.

You can opt for emails, text messages, or even WhatsApp messages for your relatives & friends. Now create a referral message and start spreading the word.

6. Track Referrals.

To benefit from your referral program, you will need to keep track of your referrals.

Who recommended whom, the date they were referred, the number of conversions you made, and so on.

7. Follow up & keep improving.

It is not necessary that all your customers will respond to your referral program.

So make sure you follow up on them by sending them a short and crisp message and by creating a sense of urgency in them.

And lastly, keep improving and implementing changes in your referral program to stay in this loop for the long-term. 2

Tips From Reddit Users

I prepared a guide to referral programs
by u/badis_khalfallah in Entrepreneur

Effective Marketing Strategy

Referral Program Ideas

If you are struggling to decide what you can give away as referrals to your customers, then here are some great ideas for you:

  • Contests or Giveaways
  • Coupons or Discounts
  • Fundraisers
  • Invitation to exclusive events
  • Mystery Gifts
  • Customer loyalty points
  • Seasonal Campaigns
  • Product or Service Upgrades

Wrapping Up

If you’re hunting for a way to make money online, joining a referral program is a great option.

By simply referring others to sign up for these programs, you can earn a commission on their earnings. The tips above will help you find the best referral programs to join.


What is the need for a referral program?

In spite of so many marketing strategies available these days, the weight that word-of-mouth marketing has is unbeatable.

So offering referrals is a word-of-mouth marketing strategy that prompts your existing customers to bring in more customers in exchange for money or some other benefits.

This keeps them happy and allows you to get more customers for your business.

What makes a referral program good?

A good referral program should deliver what it offers. It should be transparent about the service or product, and it should offer a fair incentive to the customer.

Give some examples of top brands that are running referral programs.

Here is a list of some top brands that are running successful referral program:

  • Fiverr
  • PayPal
  • Duolingo
  • Airtable
  • Dropbox
  • DocSend
  • Uber
  • Stitch Fix
  • MeUndies
  • T-Mobile
  • Acorns
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  1. https://learn.g2.com/referral-program[]
  2. https://blog.hubspot.com/service/customer-referral-program?hubs_content=blog.hubspot.com%2Fservice%2Fcustomer-referral-program&hubs_content-cta=How%20to%20Create%20a%20Customer%20Referral%20Program[]

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