Chances are you know exactly what referral marketing is.

It takes many forms. The classic, "fill out a friend's name on this sheet" or the "refer a friend" program where you give a friend a coupon or even better a "free ride" or "free lunch".

Since we’re discussing the mechanics of referral marketing, we should probably reiterate what the subject is. The basic concept is to encourage customers to share your business with their friends and family. It’s a way to grow a business by leveraging the business's network of customers and partners.

Some people think of referral marketing as incentivized word of mouth marketing. Typically, there is an incentive involved, which helps encourage customers to share. It should be noted this is not always the case. You may see the term referral marketing used interchangeably with advocate marketing, brand ambassador, and influencer marketing, but those terms can also have a very different meaning. So when you are planning your referral program make sure you are clearly defining each term.

Referral marketing is like many other marketing channels, where it pays to pay attention to the user experience.

Why referral marketing works

It’s a fact that word of mouth is influential. Referral marketing stems from word of mouth marketing, which is one of the big reasons for its success. Referral marketing works because people are more likely to be influenced by product recommendations from friends. This has been proven time and time again. A study by Nielsen found that people trust recommendations from friends and family over all other sources. That’s just one of the many studies that have proven why this type of marketing is effective.

Marketing can be difficult, time-consuming and not to mention expensive. As it turns out, referral marketing could be the solution to these marketing woes. Referral marketing takes your already established customers and uses them to market your business.

Referral marketing is like many other marketing channels, where it pays to pay attention to the user experience.

You can read the whole article The Mechanics of a Referral Marketing System: How and why it works

Have you run a customer referral program before?

Refer a Friend Software Increases Word of Mouth

Every business owner knows word of mouth can be a powerful way to grow a business.

We help businesses get more customer referrals by making it easier for customers to refer a business to their friends. We utilize proven referral marketing strategies and tactics baked into our customer referral software.

Your customers love your business and want to refer their friends. Let's help them with great refer a friend software.

referral marketing

Can your referral program do this?

Easier to Share

Your customers can refer your business in as little as 2 clicks.


Your site is optimized for mobile and tablet viewing (63% of users go online on a mobile device)


Your customers share a personalized experience with their friends, increasing the level of interest


With your customers sharing on social networks you are reaching more potential customers


View statistics on every share, like, tweet, view, click and new customers generated


Follow up with new customers, distribute incentives, and reward your most valuable customers

Everything you need to get more referrals! Start my free trial or schedule a demo