referral-program

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:

1. In-product sharing (highest conversion)
2. Personalized link
3. Email invitation
4. Social sharing
5. 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

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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

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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

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Launch Checklist

Before Launch

• Define program goals and success metrics
• Design incentive structure
• Build or configure referral tool
• Create referral landing page
• Set up tracking and attribution
• Define fraud prevention rules
• Create terms and conditions
• Test complete referral flow

Launch

• Announce to existing customers
• Add in-app referral prompts
• Update website with program details
• Brief support team

Post-Launch (First 30 Days)

• Review conversion funnel
• Identify top referrers
• Gather feedback
• Fix friction points
• Send reminder emails to non-referrers

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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?"

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Affiliate Programs

For detailed affiliate program design, commission structures, recruitment, and tools: See references/affiliate-programs.md

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Task-Specific Questions

1. What type of program (referral, affiliate, or both)?
2. What's your customer LTV and current CAC?
3. Existing program or starting from scratch?
4. What tools/platforms are you considering?
5. What's your budget for rewards/commissions?
6. Is your product naturally shareable?

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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

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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