
How to Set Up a Referral Program for Your Ecommerce Store in 6 Steps
Setting up a referral program should not be hard. Here's how you can do it in six steps and start getting referrals!
Last reviewed: 13 May 2025
Quick answer: For most DTC brands, the best‑fit affiliate platforms are ReferralCandy, Refersion, UpPromote, Impact.com, and Share‑a‑Sale. Each excels at different stages of growth; details below.
When choosing an affiliate platform for DTC, focus on:
Below are the five standout options ordered by how often high‑growth DTC merchants choose them.
All prices sourced from provider sites in April 2025.
Which platform is best for sub‑$1 M stores?
UpPromote or ReferralCandy—they balance cost and ease of use.
Do I need Shopify Plus for any of these?
No. Refersion’s advanced commission scripts benefit from Plus but aren’t mandatory.
Can I switch later without losing data?
Yes. You can export affiliates via CSV and import into the new platform. Impact.com and ReferralCandy both offer migration support.
What’s the average DTC affiliate commission?
Flat $10-$15 or 10 %-15 % of net sale for new‑customer orders.
In a Nutshell
If you’re a DTC brand hunting for an affiliate platform in 2025, start with ReferralCandy or Refersion for Shopify, consider UpPromote if budget-sensitive, and move to Impact.com once you need massive creator reach. Nail your commission, install, and launch—then watch efficient, performance-based revenue roll in.
Referral and affiliate marketing are two powerful ways for e-commerce brands to grow without spending more on ads. Both can lower your customer acquisition cost, boost revenue, and improve customer loyalty. But they work differently.
This guide breaks down how each strategy works, how they compare, and when you should use one or both — along with real examples and practical tips.
Referral marketing turns satisfied customers into brand promoters. When a customer shares your brand with a friend or family member and that person buys, both of them receive a reward — often a discount, cashback, or store credit.
A skincare brand gives 15% off to both the person who refers and the person who gets referred. The customer sends their unique referral link, and both benefit when a purchase happens.
Affiliate marketing involves partnering with content creators, influencers, or bloggers who promote your product. They earn a commission on each sale they help generate using their unique affiliate links.
A YouTuber reviews your product and includes a tracked link in the video description. They earn 10% of every sale that comes through their link.
Feature | Referral Marketing | Affiliate Marketing |
---|---|---|
Who promotes | Your customers | External partners (influencers, bloggers) |
Motivation | Satisfaction + small rewards | Financial commissions |
Relationship to brand | Existing users | May or may not be users |
Incentive structure | Dual-sided (both get rewarded) | One-sided (affiliate earns only) |
Best use case | Loyalty and retention | Reach and discovery |
Tracking method | Referral links or codes | Affiliate links with unique IDs |
Referral marketing works best when you already have happy, engaged customers.
Brands with high repeat purchases like skincare, food and beverage, wellness, and apparel.
Affiliate marketing helps you scale your message using trusted third-party voices.
Brands entering new markets or aiming to scale across different audiences.
Situation | Recommended Strategy |
---|---|
You’re a new brand | Affiliate marketing |
You have strong customer loyalty | Referral marketing |
You work with creators or influencers | Affiliate marketing |
CAC is rising | Referral marketing |
You want long-term SEO value | Affiliate marketing |
You’re already seeing high NPS | Referral marketing |
Yes, many high-performing e-commerce brands run both programs in parallel.
MiaoMiao, a health tech brand, runs both referral and affiliate programs using ReferralCandy.
If you already have customers who love your brand:
→ Start a referral program.
If you work with influencers or want to improve your SEO:
→ Launch an affiliate program.
If you want both, ReferralCandy lets you manage referral and affiliate in one place.
Last reviewed: 8 May 2025
Quick answer: The median referral conversion rate for eCommerce brands in 2025 is 3 % – 5 %. Top‑quartile programs crack 8 %+. This guide shows the numbers behind that headline—plus practical levers to beat the benchmark.
Benchmarks keep goals realistic and experiments focused. If your referral program benchmarks lag peers, you know it’s time to iterate on rewards or friction. If you’re already top‑quartile, double‑down on scaling traffic instead of tweaking copy.
Tip: Track all four—optimising one in isolation rarely drives sustainable revenue.
Across 3,200 Shopify and WooCommerce stores (ReferralCandy dataset, Q1 2025):
Bookmark: Top performers almost always pair cash‑equivalent rewards with friction‑free redemption.
Want a snapshot? Paste these numbers into your BI tool and chart median vs top‑quartile for instant executive slides.
Below are verified 2025 median referral conversion rates from our merchant dataset:
Use these figures to benchmark your own program. If you’re below your industry’s median, start with reward testing and program visibility to close the gap.
What counts as a conversion?
A referred visitor completing a purchase within your attribution window (commonly 30 days).
Is 5 % CR “good”?
It’s above the 2025 median. Target 8 % to join top performers.
Do subscription products skew higher?
Yes—predictable value boosts trust, typically adding 1.5 pp – 2 pp to CR.
How long until I see improvement?
Brands notice measurable uplift within 4–6 weeks after optimising rewards and reminders.
Should rewards be cash or discount?
Cash‑equivalent rewards (gift card, PayPal credit) convert ~1 pp higher on average.
Get more sales with referral and
affiliate programs that work
Setting up a referral program should not be hard. Here's how you can do it in six steps and start getting referrals!
Explore 2025’s top affiliate platforms for DTC brands—pricing, key features, and best affiliate networks to pick the right DTC affiliate solution for growth.
Discover the differences between referral and affiliate marketing, their benefits, and determine which strategy suits your e-commerce brand best.
See 2025 referral program benchmarks by industry. Compare conversion rates, learn key metrics, and unlock tips to push your referral conversion above 8 %.
Start an affiliate program on Shopify in 2025 with this step‑by‑step guide: Prerequisites, setup tips, top tracking apps, and a launch checklist.
Discover the top Shopify affiliate tracking apps for 2025. Compare features, pricing, and integrations for ReferralCandy, Refersion, UpPromote, and more – and find the best fit for your store.
Transform your organic word-of-mouth into a structured affiliate program with ReferralCandy. This step-by-step guide helps Shopify merchants overcome common challenges and launch their first affiliate program without technical expertise.
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