Word-of-Mouth and Referral Marketing Blog

Referral Program Components: The 4 Types Of Referral Rewards

In this post, we’ll go through the various types of referral rewards that are commonly used by merchants around the world.

A referral reward, as we define it, is a reward that’s given to an advocate for making a successful referral.

There are broadly 4 categories of referral rewards:

1. Cash rewards
1-cash

Cash rewards can be very enticing to potential referrers. They were famously successful for PayPal, which has a bit of a special use-case because it’s a payments gateway. (Bitcoin may perhaps enjoy similar conditions?)

If you choose to give out cash rewards, advocates will be rewarded each time they make a successful referral that results in a qualifying purchase.

Cash rewards can be of the following types:

  • A fixed cash amount  (e.g. $10 for each referral made)
  • A percentage of the referred friend’s purchase (e.g. 5% of referred friend’s purchase for each referral made)

referralcandy-cash-reward-config

The ReferralCandy app fulfils the delivery of cash rewards automatically and can be through these channels:

  • PayPal – the reward will be sent directly to the advocate’s PayPal account by ReferralCandy
  • Donation to charity* – the reward will be donated by ReferralCandy to a charity chosen by the advocate

If you select more than one channel, advocates will have a choice of any of the selected channels when claiming their reward.

Note: You are able to change the currency shown for cash rewards.

*View list of charities here.

2. Single-use Coupons
2-single-coupon

If you choose give out single-use coupon codes, advocates will be rewarded each time they make a successful referral that results in a qualifying purchase.

Any single-use coupon codes that your store accepts during checkout can be used as a referral reward.

Delivery of the single-use coupon code reward is handled automatically by the ReferralCandy app:

referralcandy-single-use-coupon

The app sends the advocate an email alerting them of their eligibility for the reward when a successful referral has been made. The advocate can then access the single-use coupon codes from their Portal Rewards Page.

To use single-use coupon codes as referral rewards, you will need to upload a list of single-use coupon codes into your campaign (upload them at your Coupons page at https://my.referralcandy.com/coupons).

Each code that you upload will be given out only once as a reward. If you run out of single-use coupon codes to be given out as rewards, you would need to upload more single-use coupon codes for your campaign.

3. Multi-use Coupons3-multi-coupon

If you choose to give out multiple-use coupon codes, advocates will be sent the multi-use coupon code for each successful referral that they make. Any multiple-use coupon code that your store accepts during checkout can be used as a referral reward.

Delivery of the multiple-use coupon code reward is handled automatically by the ReferralCandy app:

referralcandy-multi-use-codes

The app sends the advocate an email alerting them of their eligibility for the reward when a successful referral has been made. The advocate can then access the multiple-use coupon code from their Portal Rewards Page.

4. Custom Rewards4-custom-gift

Sometimes you might not want to have a fixed cash or coupon reward for your customers. Perhaps you may want to run a giveaway, or reward people at random, or reward every customer with some personalized artwork.

ReferralCandy makes it easy for you to do this– it’ll simply alert you every time a successful referral is detected.

Each time a referral is detected by ReferralCandy, a reward email will be sent to the advocate to inform him/her of their eligibility for the reward. An email alert will also be sent to you to inform you of the referral, so that you can send out the reward manually yourself.

Visakan Veerasamy

Visa is ReferralCandy's Blog Editor. He also co-founded Statement.sg, a fashion ecommerce label selling witty t-shirts. He's been thrice named a Top Writer on Quora. He hopes to enjoy a glass of whiskey onboard a commercial space flight someday.

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