Referral Program

---
name: referral-program
description: "When the user wants to create, optimize, or analyze a referral, affiliate, or word-of-mouth program — 'ambassador,' 'viral loop,' 'refer a friend,' 'partner program,' 'referral incentive,' 'affiliate payout.' For launch-specific virality, see launch-strategy."
category: marketing
tier: on-demand
---

# Referral & Affiliate Programs

Design and optimize programs that turn customers into growth engines.

## Before Starting

**Product context:** If `.agents/product-marketing-context.md` exists (or `.claude/product-marketing-context.md` in older setups), read it first and tailor output to it; only ask for what it doesn't cover.

Gather (ask if not provided):

1. **Program Type** — customer referral, affiliate, or both? B2B or B2C? Average customer LTV? Current CAC from other channels?
2. **Current State** — existing program? Referral rate (% who refer)? Incentives tried?
3. **Product Fit** — shareable product? Network effects? Do customers naturally talk about it?
4. **Resources** — tools/platforms in use or considered? Budget for incentives?

---

## Referral vs. Affiliate

**Customer referral programs** — best for existing customers recommending to their network, products with natural word-of-mouth, lower-ticket or self-serve products. Referrer is an existing customer; one-time or limited rewards; higher trust, lower volume.

**Affiliate programs** — best for reaching audiences you don't have access to (content creators, influencers, bloggers) and higher-ticket products that justify commissions. Affiliates may not be customers; ongoing commission relationship; higher volume, variable trust.

---

## Referral Program Design

### The Referral Loop

```
Trigger Moment → Share Action → Convert Referred → Reward → (Loop)
```

### Step 1: Identify Trigger Moments

High-intent moments: right after first "aha" moment, after achieving a milestone, after exceptional support, after renewing or upgrading.

### Step 2: Design Share Mechanism

Ranked by effectiveness:
1. In-product sharing (highest conversion)
2. Personalized link
3. Email invitation
4. Social sharing
5. Referral code (works offline)

### Step 3: Choose Incentive Structure

- **Single-sided** (referrer only): simpler, works for high-value products
- **Double-sided** (both parties): higher conversion, win-win framing
- **Tiered**: gamifies referrals, increases engagement

**For examples and incentive sizing**: See [references/program-examples.md](references/program-examples.md)

---

## Program Optimization

### Improving Referral Rate

**Few customers referring:** ask at better moments, simplify sharing, test different incentive types, make referral prominent in product.

**Referrals not converting:** improve landing experience for referred users, strengthen incentive for new users, make referrer's endorsement visible.

### A/B Tests to Run

- **Incentive:** amount, type, single vs. double-sided, timing
- **Messaging:** program description, CTA copy, landing page copy
- **Placement:** where and when the referral prompt appears

### Common Problems & Fixes

| Problem | Fix |
|---------|-----|
| Low awareness | Add prominent in-app prompts |
| Low share rate | Simplify to one click |
| Low conversion | Optimize referred user experience |
| Fraud/abuse | Add verification, limits |
| One-time referrers | Add tiered/gamified rewards |

---

## Measuring Success

**Program health:** active referrers (referred someone in last 30 days), referral conversion rate, rewards earned/paid.

**Business impact:** % of new customers from referrals, CAC via referral vs. other channels, LTV of referred customers, program ROI.

**Typical findings:** referred customers have 16-25% higher LTV, 18-37% lower churn, and refer others at 2-3x rate.

---

## Launch Checklist

### Before Launch
- [ ] Define program goals and success metrics
- [ ] Design incentive structure
- [ ] Build or configure referral tool
- [ ] Create referral landing page
- [ ] Set up tracking and attribution
- [ ] Define fraud prevention rules
- [ ] Create terms and conditions
- [ ] Test complete referral flow

### Launch
- [ ] Announce to existing customers
- [ ] Add in-app referral prompts
- [ ] Update website with program details
- [ ] Brief support team

### Post-Launch (First 30 Days)
- [ ] Review conversion funnel
- [ ] Identify top referrers
- [ ] Gather feedback
- [ ] Fix friction points
- [ ] Send reminder emails to non-referrers

---

## Email Sequences

### Referral Program Launch

```
Subject: You can now earn [reward] for sharing [Product]

We just launched our referral program!

Share [Product] with friends and earn [reward] for each signup.
They get [their reward] too.

[Unique referral link]

1. Share your link
2. Friend signs up
3. You both get [reward]
```

### Referral Nurture Sequence

- Day 7: Remind about referral program
- Day 30: "Know anyone who'd benefit?"
- Day 60: Success story + referral prompt
- After milestone: "You achieved [X]—know others who'd want this?"

---

## Affiliate Programs

**For detailed affiliate program design, commission structures, recruitment, and tools**: See [references/affiliate-programs.md](references/affiliate-programs.md)

---

## Task-Specific Questions

1. What type of program (referral, affiliate, or both)?
2. Customer LTV and current CAC?
3. Existing program or starting from scratch?
4. What tools/platforms are you considering?
5. Budget for rewards/commissions?
6. Is your product naturally shareable?

---

## Tool Integrations

For implementation, see the [tools registry](../../tools/REGISTRY.md). Key tools:

| Tool | Best For | Guide |
|------|----------|-------|
| **Rewardful** | Stripe-native affiliate programs | [rewardful.md](../../tools/integrations/rewardful.md) |
| **Tolt** | SaaS affiliate programs | [tolt.md](../../tools/integrations/tolt.md) |
| **Mention Me** | Enterprise referral programs | [mention-me.md](../../tools/integrations/mention-me.md) |
| **Dub.co** | Link tracking and attribution | [dub-co.md](../../tools/integrations/dub-co.md) |
| **Stripe** | Payment processing (for commission tracking) | [stripe.md](../../tools/integrations/stripe.md) |

---

## Related Skills

- **launch-strategy** — launching the referral program effectively
- **email-sequence** — referral nurture campaigns
- **marketing-psychology** — understanding referral motivation
- **analytics-tracking** — tracking referral attribution