referrals

Design the referral loop in four steps: pick a trigger moment (after the aha moment or a milestone), choose a share mechanism (in-product sharing converts best), optimize the referred user's landing experience, and select an incentive. Double-sided rewards where both parties benefit typically convert highest.

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

Double-sided rewards give both the referrer and the referred user value, producing higher conversion and a generous framing for sharing. Single-sided rewards are simpler and work for high-value products where the referrer's motivation alone is sufficient.

Common structures include 10-30% of the first sale, flat fees of $5-500 per action, 10-25% recurring commissions for subscriptions, and tiered rates that increase with volume. Digital courses typically pay 20-40% commissions.

Low participation usually stems from poor awareness, badly timed asks, weak incentives, or sharing friction. Fix it by prompting at peak satisfaction moments, simplifying sharing to one click with pre-written messages, and testing incentive types and placement.

Build product-embedded virality when your product sits on the natural end of the Viral Potential Spectrum, such as collaboration, communication, or user-facing output tools. Mechanisms like exposure loops, embeds, and Powered By badges are cheaper than paid rewards; referral programs are the fallback when the product does not spread naturally.