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Referral Marketing

Referral marketing is a strategy that encourages existing customers to recommend a product to others, usually with a two-sided reward, leveraging personal trust to acquire new customers at low cost.

Unlike affiliate programs aimed at professional publishers, referral marketing targets a brand's own happy customers, giving both the referrer and the new customer an incentive — a credit, discount, or cash reward — to spread the word.

Referral programs convert well because recommendations arrive with built-in trust, and they scale acquisition efficiently since the cost is paid only on a successful referral. They are tracked with unique links or codes much like affiliate programs.

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