How to launch a referral program
What you'll learn
- →Referral vs. affiliate (when to pick which)
- →Give-X-get-X math
- →Where to ask (and where not to)
- →Measuring true ROI
Before you start
- □A repeat-purchase business model
- □An existing happy customer base
Referrals are the highest-converting acquisition channel for almost every consumer business — and the most under-built. Here's a clean launch path.
The steps
- Step 01
Pick a give-X-get-X structure
$10 for referrer, $10 for new customer. Symmetric, easy to remember, easy to share.
- Step 02
Make the math work for your unit economics
Total reward < 50% of CAC. If CAC is $40, $15+$15 works; $30+$30 doesn't.
- Step 03
Use a referral platform
ReferralCandy, Friendbuy, Yotpo. Or build with Stripe + a tracking link.
- Step 04
Promote at the highest-affinity moments
Order confirmation page, post-delivery email, after a positive support interaction.
- Step 05
Make sharing one tap
Native share sheet, pre-written message, unique link. Friction kills shares.
- Step 06
A/B test the reward
Run cash vs. credit vs. product. Store credit usually wins on retention.
- Step 07
Email referrers monthly with their earnings
'You've earned $40 in credit — share again' = reactivation engine.
Common questions
+Referral or affiliate program?
Referral = customers refer friends. Affiliate = creators/partners refer audiences. Run both eventually.
+What's a good referral conversion rate?
10–30% of share clicks convert, much higher than organic.
+Cash or credit?
Credit. Cash payouts cost more and lower retention.
+Should I require the friend to be new?
Yes — to prevent abuse.
+When should I launch?
After you have 100+ happy customers who'd recommend you.
What to do next
Social Perks turns happy customers into a marketing team. Free 14-day trial. No card required.
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