Referral Program Parameters
PRO FEATUREFrequently Asked Questions
How do I create a referral program for my small business?
Decide on your reward (cash, discount, gift, or service credit), set the reward amount based on your profit margins, create a simple tracking method, and communicate the program to existing clients. This tool calculates the right reward amount and creates the entire program structure for you.
How much should I pay for a referral?
Your referral reward should be no more than 20-30% of your average customer lifetime value. If a customer is worth $1,000 to you over their lifetime, a $100-200 referral reward is sustainable. This tool calculates your maximum affordable reward automatically.
Do referral programs actually work for small businesses?
Yes — referred customers convert at 3-5x the rate of cold leads, spend 25% more, and have 16% higher lifetime value. The challenge is that most small businesses never formally launch a referral program. This tool makes launching one take 10 minutes instead of weeks.
Is the referral program designer free?
It is a Pro feature included with the $49 lifetime Pro plan. Pro users get the complete referral program design including reward calculations, email templates, and the one-page program brief.
How it works
Input your company's name, product or service sold, customer lifetime value, and typical transaction size. The referral program designer does the economic math to establish maximum safe acquisition costs, proposes dual-sided rewards, designs the program mechanics, and writes launching templates and a one-page program brief.
Tips for best results
- •Keep it dual-sided: rewarding BOTH the person referring and the person receiving ensures everyone is motivated and feels like they are sharing a gift, not selling a service.
- •Choose an easy tracking mechanism (e.g. asking new clients 'Who referred you?' or using simple coupon codes) before investing in expensive tracking software.
- •Add referral touchpoint snippets to the bottom of all your invoices and the P.S. section of your regular newsletters.