Referral Programme

A structured system that rewards existing customers for referring new customers. Different from affiliate marketing, referrals typically come from customers rather than content publishers.

Referral is the highest-trust acquisition channel. People are 4x more likely to buy when referred by a friend. A formalised programme turns every happy customer into a salesperson.

A founder launches a referral programme: "Give £20, get £20." In 6 months, 23% of new customers come from referrals, acquired at £20 CAC vs her average £85 from paid ads.