What is Referral Program About?

What is Referral ProgramIt seems you might read this term several times on variety of platforms through Internet and searching for the main concept of it.

So here I am going to clarify the essential information about this subject in order to help you understand what is the meaning of referral program and how it works.

Definition : A Referral Program is a rewards system provided by companies in order to motivate you tell someone about their products and services.

Companies will start awarding you (upon joining them) when your referral (person who have been invited by you) buys any of their products and services Or when he/she performs some tasks there such as generating sales, completing paid surveys, watching advertisements,…etc.
The tasks and rewards are identified by companies.

What Kind of Rewards The Referrer Will Receive From Referral Programs?
The rewards can be in different forms, such as cash, coins, commissions, free traveling, redeemable points, gift cards, discounts on products, etc.
Simply, anything which can give the referrer a benefit.

Thank you for reading my article regarding what is referral program about and how it works.

I would like to know your opinion, feel free to share it in the comment section below.

16 Replies to “What is Referral Program About?”

  1. Thank you for clarifying what is a referral program. I used to do referral program for Lyft, so I can get credits taking a cab home and that is great. In my opinion, I think referral program is very similar to affiliate program. Only that referral programs you get the perks, while affiliate program you make money snd can turn it into a career. 

    1. You are welcome Nuttanee,

      That is what I have noticed too in regard to the similarities between referral programs and affiliate programs. Although that there are many publishers speak about this particular, I did not find the real difference yet!

      Your conclusion may be correct, however, I will try to study this topic well in order to explain it in the best possible way.

  2. I’ve tried to make money online by joining a number of referral programs such as Referral Pay and Viral Dollars but most of them didn’t pay their referrers.

    Do you happen to know of any good referral program to make money with? I’ve been tired of completing surveys… They are so boring and the amount of money you make with them is minimal.

    Thank you very much!

  3. Implementing a good referral program is crucial these days as the competition has gone up, you can no longer win with mediocre efforts today. Nevertheless, if a company has an army of referral marketers, it will always win. The deal should be “win-win” situation, with the online company getting new customers and the people referring get commissions in the referral program. As an internet marketer, I only promote or recommend services that has an affiliate or referral program. 

    1. I would not be surprised if referral/affiliate programs can help small businesses grow in short time.
      In any case, it all depends on the incentives provided.

  4. I see that the Referral program is a great opportunity to get commissions, discounts on products, gift cards and so forth.

    So there is no link to a Referral Program that you suggest? 

    This is great information to know and to be aware of these programs that are out there. So thank you for this information and all the best to you.

    1. Excuse me Abidah, are you asking for a way to owning a referral program for your business or joining a company that implement an advanced one?
      If you are looking for setting up a good referral system, then I suggest you to type the question via search engines and see the reputable referral programs providers ( I have not managed a referral program yet).

  5. Thanks for explaining what a referral program is. You’re right, this term is seen very often on many different platforms. Although commonly seen, it’s good to have a clear explanation and definition of “referral program” given, like you did. 

    Some companies also reward you for bringing in some affiliates, who in turn, bring referrals to them.

    Thank you again Acell. 

    1. You are welcome Sandy 🙂
      What you have mentioned about bringing direct referrals is become a popular one and it used widely nowadays.

  6. Awesome write-up Acell. To me, I believe sales referrals are perhaps the most ideal approaches to get new outbound leads and potential customers. Learning the significance of sales referrals, and executing methods to build up a culture that grasps sales referrals, is critical to creating more income, closing more deals, and connecting with more potential customers


  7. Hi Acell!

    Referrals are important because they can help you build your business. It is also important to know their role in the process. Your explanation will help to understand their importance!

    The referral program is associated with referral marketing.

    Wikipedia explains Referral marketing as follows: “Referral marketing is the method of promoting products or services to new customers through referrals, usual word of mouth. Such referrals often happen spontaneously but businesses can influence this through appropriate strategies.”

    As stated, one of the useful strategies to use referral marketing and referrals is to entice so-called “word of mouth advertising.” besides, companies can use other strategies to manage referrals!

    Thanks for sharing the info!

    Best regards,

    1. Hi Igor,

      Thanks for the addition, that explanation from Wikipedia is an excellent one.
      Referral marketing plays a big role in bringing new consumers for companies/merchants because their existing clients help them promote their products and services, however, this type of marketing should be used in appropriate manner!

  8. Well explained Acell,

    I love doing referral campaigns in a business as it not only gives the referrals the opportunity to earn a little more, it also shows how good that specific company is as they are open to rewarding people who support them. I just found out at my university that I can get a 30% discount from my fees if I were to get at least 2 of my friends to enroll and though they didn’t say it, that too is considered referrals right?

    1. Thank you Riaz Shah,

      Referral programs are useful for markets and customers in general.
      Of course Riaz, they will be considered referrals because you refer them to that university. By the way, it seems your university has good plans about progressing.

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