| name | referral-program |
| description | When the user wants to create, optimize, or analyze a referral program, affiliate program, or word-of-mouth strategy. Also use when the user mentions 'referral,' 'affiliate,' 'ambassador,' 'word of mouth,' 'viral loop,' 'refer a friend,' 'partner program,' 'referral incentive,' 'how to get referrals,' 'customers referring customers,' or 'affiliate payout.' Use this whenever someone wants existing users or partners to bring in new customers. For launch-specific virality, see launch-strategy. |
| tags | ["nontechnical","corey-marketingskills","referral-program","strategy"] |
| metadata | {"version":"1.1.0"} |
Referral Program Design
The Referral Loop
Trigger Moment → Share Action → Convert Referred → Reward → (Loop)
Step 1: Identify Trigger Moments
High-intent moments:
- Right after first "aha" moment
- After achieving a milestone
- After exceptional support
- After renewing or upgrading
Step 2: Design Share Mechanism
Ranked by effectiveness:
- In-product sharing (highest conversion)
- Personalized link
- Email invitation
- Social sharing
- Referral code (works offline)
Step 3: Choose Incentive Structure
Single-sided rewards (referrer only): Simpler, works for high-value products
Double-sided rewards (both parties): Higher conversion, win-win framing
Tiered rewards: Gamifies referral process, increases engagement
For examples and incentive sizing: See references/program-examples.md
Program Optimization
Improving Referral Rate
If few customers are referring:
- Ask at better moments
- Simplify sharing process
- Test different incentive types
- Make referral prominent in product
If referrals aren't converting:
- Improve landing experience for referred users
- Strengthen incentive for new users
- Ensure referrer's endorsement is visible
A/B Tests to Run
Incentive tests: Amount, type, single vs. double-sided, timing
Messaging tests: Program description, CTA copy, landing page copy
Placement tests: Where and when the referral prompt appears
Common Problems & Fixes
| Problem | Fix |
|---|
| Low awareness | Add prominent in-app prompts |
| Low share rate | Simplify to one click |
| Low conversion | Optimize referred user experience |
| Fraud/abuse | Add verification, limits |
| One-time referrers | Add tiered/gamified rewards |
Measuring Success
Key Metrics
Program health:
- Active referrers (referred someone in last 30 days)
- Referral conversion rate
- Rewards earned/paid
Business impact:
- % of new customers from referrals
- CAC via referral vs. other channels
- LTV of referred customers
- Referral program ROI
Typical Findings
- Referred customers have 16-25% higher LTV
- Referred customers have 18-37% lower churn
- Referred customers refer others at 2-3x rate
Launch Checklist
Before Launch
Launch
Post-Launch (First 30 Days)
Email Sequences
Referral Program Launch
Subject: You can now earn [reward] for sharing [Product]
We just launched our referral program!
Share [Product] with friends and earn [reward] for each signup.
They get [their reward] too.
[Unique referral link]
1. Share your link
2. Friend signs up
3. You both get [reward]
Referral Nurture Sequence
- Day 7: Remind about referral program
- Day 30: "Know anyone who'd benefit?"
- Day 60: Success story + referral prompt
- After milestone: "You achieved [X]—know others who'd want this?"
Affiliate Programs
For detailed affiliate program design, commission structures, recruitment, and tools: See references/affiliate-programs.md
Task-Specific Questions
- What type of program (referral, affiliate, or both)?
- What's your customer LTV and current CAC?
- Existing program or starting from scratch?
- What tools/platforms are you considering?
- What's your budget for rewards/commissions?
- Is your product naturally shareable?
Tool Integrations
For implementation, see the tools registry. Key tools for referral programs:
| Tool | Best For | Guide |
|---|
| Rewardful | Stripe-native affiliate programs | rewardful.md |
| Tolt | SaaS affiliate programs | tolt.md |
| Mention Me | Enterprise referral programs | mention-me.md |
| Dub.co | Link tracking and attribution | dub-co.md |
| Stripe | Payment processing (for commission tracking) | stripe.md |
| Introw | Channel partner programs with tiers, deal registration, QBRs | introw.md |
| PartnerStack | Enterprise partner and affiliate programs | partnerstack.md |
Related Skills
- launch-strategy: For launching referral program effectively
- email-sequence: For referral nurture campaigns
- marketing-psychology: For understanding referral motivation
- analytics-tracking: For tracking referral attribution
