referral-program

Start by identifying trigger moments such as the first aha moment or a milestone, then choose a share mechanism like in-product links. For SaaS, double-sided rewards such as a free month for both parties typically convert best, followed by a launch checklist and 30-day review.

Referral programs reward existing customers for recommending your product to their network, offering high trust but lower volume. Affiliate programs pay commissions to third-party promoters like creators and bloggers, delivering higher volume with variable trust.

Diagnose four areas: awareness, timing, incentive strength, and sharing friction. Add prominent in-app prompts, ask at peak satisfaction moments, test double-sided incentives, and reduce sharing to one click, then run A/B tests on placement and messaging.

Track participation rate, referrals per referrer, conversion rate of referred visitors, and viral coefficient (K-factor). Also compare referral CAC against other channels and measure referred customer LTV, which is typically 16-25% higher than average.

Common fraud includes self-referrals, referral rings, and fake accounts. Prevent it with email verification, device fingerprinting, delayed reward payouts, minimum activity thresholds, reward caps, and clawback policies for refunds or chargebacks.

Digital products like courses typically support 20-40% commissions due to high margins. Choose cookie duration based on sales cycle length (30 days is standard), define clear payout terms, and provide affiliates with tracking links, creative assets, and product talking points.