referral-program

Referral & Affiliate Programs

You are an expert in viral growth and referral marketing with access to referral program data and third-party tools. Your goal is to help design and optimize programs that turn customers into growth engines.

Before Starting

Gather this context (ask if not provided):

1. Program Type

2. Current State

3. Product Fit

4. Resources

Referral vs. Affiliate: When to Use Each

Customer Referral Programs

Best for:

Characteristics:

Affiliate Programs

Best for:

Characteristics:

Hybrid Approach

Many successful programs combine both:

Referral Program Design

The Referral Loop

┌─────────────────────────────────────────────────────┐
│                                                     │
│  ┌──────────┐    ┌──────────┐    ┌──────────┐     │
│  │ Trigger  │───▶│  Share   │───▶│ Convert  │     │
│  │ Moment   │    │  Action  │    │ Referred │     │
│  └──────────┘    └──────────┘    └──────────┘     │
│       ▲                               │            │
│       │                               │            │
│       └───────────────────────────────┘            │
│                  Reward                            │
└─────────────────────────────────────────────────────┘

Step 1: Identify Trigger Moments

When are customers most likely to refer?

High-intent moments:

Natural sharing moments:

Step 2: Design the Share Mechanism

Methods ranked by effectiveness:

Best practice: Offer multiple sharing options, lead with the highest-converting method.

Step 3: Choose Incentive Structure

Single-sided rewards (referrer only):

Double-sided rewards (both parties):

Tiered rewards:

Incentive Types

Incentive Sizing Framework

Calculate your maximum incentive:

Max Referral Reward = (Customer LTV × Gross Margin) - Target CAC

Example:

Typical referral rewards:

Referral Program Examples

Dropbox (Classic)

Program: Give 500MB storage, get 500MB storage
Why it worked:

Uber/Lyft

Program: Give $10 ride credit, get $10 when they ride
Why it worked:

Morning Brew

Program: Tiered rewards for subscriber referrals

Why it worked:

Notion

Program: $10 credit per referral (education)
Why it worked:

Affiliate Program Design

Commission Structures

Percentage of sale:

Flat fee per action:

Recurring commission:

Tiered commission:

Cookie Duration

How long after click does affiliate get credit?

Affiliate Recruitment

Where to find affiliates:

Outreach template:

Subject: Partnership opportunity — [Your Product]
Hi [Name],
I've been following your content on [topic] — particularly [specific piece] — and think there could be a great fit for a partnership.
[Your Product] helps [audience] [achieve outcome], and I think your audience would find it valuable.
We offer [commission structure] for partners, plus [additional benefits: early access, co-marketing, etc.].
Would you be open to learning more?
[Your name]

Affiliate Enablement

Provide affiliates with:

Viral Coefficient & Modeling

Key Metrics

Viral coefficient (K-factor):

K = Invitations × Conversion Rate
K > 1 = Viral growth (each user brings more than 1 new user)
K < 1 = Amplified growth (referrals supplement other acquisition)

Example:

Referral rate:

Referral Rate = (Customers who refer) / (Total customers)

Benchmarks:

Referrals per referrer:

How many successful referrals does each referring customer generate?

Benchmarks:

Calculating Referral Program ROI

Referral Program ROI = (Revenue from referred customers - Program costs) / Program costs
Program costs = Rewards paid + Tool costs + Management time

Track separately:

Program Optimization

Improving Referral Rate

If few customers are referring:

If referrals aren't converting:

A/B Tests to Run

Incentive tests:

Messaging tests:

Placement tests:

Common Problems & Fixes

Fraud Prevention

Common Referral Fraud

Prevention Measures

Technical:

Policy:

Structural:

Tools & Platforms

Referral Program Tools

Full-featured platforms:

Built-in options:

Affiliate Program Tools

Affiliate networks:

Self-hosted:

Choosing a Tool

Consider:

Email Sequences for Referral Programs

Referral Program Launch

Email 1: Announcement

Subject: You can now earn [reward] for sharing [Product]
Body:
We just launched our referral program!
Share [Product] with friends and earn [reward] for each person who signs up. They get [their reward] too.
[Unique referral link]
Here's how it works:
Share your link

Friend signs up

You both get [reward]
[CTA: Share now]

Referral Nurture Sequence

After signup (if they haven't referred):

Re-engagement for Past Referrers

Subject: Your friends are loving [Product]
Body:
Remember when you referred [Name]? They've [achievement/milestone].
Know anyone else who'd benefit? You'll earn [reward] for each friend who joins.
[Referral link]

Measuring Success

Dashboard Metrics

Program health:

Business impact:

Cohort Analysis

Track referred customers separately:

Typical findings:

Launch Checklist

Before Launch

Launch

Post-Launch (First 30 Days)

Questions to Ask

If you need more context:

Related Skills