Jun 21, 2023
What Are Customer Referral Programs?
And how do they work?
Reading time: 10 minutes
Like lots of consumers, you probably have certain brands you purchase online and maybe you even have apps you use to shop with as well. But did you know that those brands and sites and apps typically have customer referral programs that will reward you for suggesting your friends, family members, and/or colleagues shop there as well? They do. Simply by sharing a “referral link” or “referral code,” you can earn such referral incentives as extra money, discounts, and even free products that really add up. PureTalk offers one as well!
The definition of “Referral Program”
A customer referral program is a process whereby loyal customers of a particular product or service or brand are rewarded for encouraging potential customers to use or buy that particular product or service or brand. (The caveat is that they can't be existing customers. Only new.)
Essentially, the company involved is asking you to become a brand ambassador for it and for taking part in their referral process, they’ll reward you with gift cards, discounts, real money, and sometimes free gifts for those who act on your customer referral.
Referral programs are a good way for businesses to develop loyal customers.
Here are some referral program examples:
Casper
The mattress company Casper has a successful referral program that rewards loyal customers with a $10 gift card to Amazon when a friend they refer purchases a mattress for the first time.
Girlfriend Collective
Active wear brand Girlfriend Collective has a customer referral program that gives loyal customers $10 off of their next purchase, and the referred friend gets a free pair of leggings.
Referral programs are an easy way to make a little “mad” money
We know a woman who makes around $150 a month referring potential customers (like friends and family) to Rakuten (a site and program we’ll talk about in just a moment). As she says, “I use it to pay for manicures or a little something special for myself or someone else I otherwise wouldn’t be able to buy. I call it my ‘mad’ money.”
Mad money is one way to describe it. Passive extra income is another. Referral programs can be great side hustles. There’s almost no work involved with a good referral program or programs because you really like the product or brand you’re referring your friends to, so it can be a lot of fun.
The nuts and bolts of the customer referral process
It’s very simple. Existing customers sign up to take part in a brand or sit's referral marketing program, then distribute the link or referral code provided to you through your account from whatever brand referral marketing program, site, or app you’re using.
Here’s how:
Forward it
If the code or link is sent to you via text or email, you can forward it to friends, family, colleagues, neighbors, you name it. Then, when the recipient of your link uses it to create their own account, you receive whatever reward the program offers loyal customers like yourself.
For example, let’s say you share a code or link you received from Uber with a friend and your friend signs up for an account. In that case, both of you are rewarded with a free ride the next time you need one. It’s not money back, but it is money you don’t have to spend the next time you need to go from point A to point B. (And your friend doesn’t have to spend money either!)
Include it in your email signature
You can also share your code or referral links in your email signature. If you do this, add some text that says, “Start saving with Rakuten! Use my referral link to get $10 just for joining and get cash back on your purchases all year long!” Then of course provide your referral link.
Share it on social media
You can also share your referral program ideas, codes or links on social media. Facebook, Instagram, Twitter, and Pinterest are all excellent platforms for reaching your friends and family and increasing your rewards.
And, if what you’re sharing is great referral program or a business-related referral program, like web host service Hostinger offers, don’t forget to share it on LinkedIn.
Wondering which referral programs will pay you for referring your friends and family?
Following are a few referral reward program and examples of websites and apps you can consider joining. Please note that in all instances, you need to open a new account, so if you already have an account, you will not receive the sign up or referral rewards above. In addition, anyone you refer has to be new to the site or app as well.
Rakuten:
Rakuten touts itself as the “#1 Cashback Shopping Companion.” It has more than 15 million members and through its successful referral program has paid them more than $2 billion in cash back.
The company's referral incentives include giving you a $10 bonus for joining (after you make a $25 purchase within the first 90-days) as well as cash back at more than 3,500 stores including Target, Sam’s Club, Ulta, Saks Fifth Avenue, Old Navy, Lowe’s, Macy’s and more.
To accrue your cashback:
1.
Shop any of the retailers on the Rakuten site by going first to Rakuten.com.
2.
At Rakuten.com, click on the link to the retailer’s site. This allows Rakuten to track your purchase(s) and credit them to your account. You can also do this by using the Rakuten App.
3.
With regard to referral process of getting the money you’ve saved by shopping through Rakuten, you can request to receive your money via check or PayPal.
Overall:
Easy to use and a great selection of retailers new customers to shop from.
Swagbucks:
Swagbucks customer referral program gives you free gift cards for shopping online, playing video games, watching videos, answering surveys, and more.
You can redeem Swagbucks points (called SB) for cash via PayPal or gift cards to stores like Amazon and Starbucks. Plus, refer a friend to Swagbucks and get $5 for each one who signs up.
Overall:
This customer referral program is a little cumbersome to use, but teens and young adults like it. And it’s not a bad way for them to earn a little income.
Ibotta:
Similar to Rakuten, Ibotta is a shopping app that offers real cashback on everyday purchases from grocery stores and top retailers like Walmart, Target, CVS, and more.
To shop from your computer using the customer referral program, first download the Ibotta browser extension. Then shop the retailer of your choice through the extension so Ibotta can track your purchase(s) and credit them to your account.
You get $10 for signing up and $5 for every verified referral, plus another $5 when you spend $15.
Overall:
Like Swagbucks, a little cumbersome as you need to download the Ibotta browser extension which can be a little confusing. However, if you have access to a teen or young adult it can be done in and you can be earning cash rewards 30 seconds!
Cash App:
Cash App is a referral marketing program that doesn’t reward you for signing up, but you do earn a bonus when your referral uses your referral code to send at least $5 to someone.
To receive the bonus, your customer referrals must be new Cash App users, they must enter your referral code when they create their Cash App account, they need to link a debit card or bank account to their Cash App account, and they have to send $5 within 14 days of entering your referral code.
Overall:
Because it's straightforward and easy to use, Cash App is a particularly successful referral marketing program. The woman we mentioned earlier uses Cash App to send money to her son who’s a senior in college. She reports that it’s made life a lot easier!
Getaround:
Getaround is a car-sharing app. Car owners enroll their vehicles and make money renting them out to other Getaround users.
When you join the app and refer a friend who also joins, you receive a $20 credit. Should your referral end up listing his or her car with the app, you receive $200.
Overall:
Easy to use, and the company has good protections and rules in place for protecting the cars enrolled and those who use them.
Tesla:
At Tesla, the company’s electric cars do not have a referral marketing program but its clean-energy solar products do. Simply make a purchase of Tesla’s Solar Roof or Solar Panels and you will receive a unique referral link.
Those who order through your referral link will earn $500 for Tesla’s Solar Roof and $300 for its Solar Panels.
You earn $500 for each Solar Roof referral and $300 for each Solar Panels referral.
Overall:
Tesla’s referral program is touted as one of the best referral incentives around. If you’re embracing clean-energy, it’s worth looking into.
About PureTalk's customer referral program:
Refer a Friend
At PureTalk, when you refer your friends, you reward yourself with our Refer a Friend referral program
When you join PureTalk, you’re given a unique referral link you can share with friends and family. For each friend who signs up through your unique link, you receive a $20 bill credit applied to your account, and your friend receives a $20 credit applied to their account.
Best of all, there are no limits. You can refer as many friends as you want, and you will get a $20 credit for every single one of them.
Everything you need to know about the PureTalk Customer Referral Program:
1.
Each customer has a unique referral link to share with friends. For each friend who signs up through your unique link, you will receive a $2ill credit applied to your account, and your friend will receive a $20 credit applied to their account.
2.
There are no limits to how many friends you can refer with PureTalk's Customer Referral Program. Refer all of your friends and get a $20 credit for every single one of them.
3.
Your $20 credit will post to your account after your friend completes their second active month of service.
4.
To see which of your friends you have referred to PureTalk, log in to MY ACCOUNT and click the "Referrals" tab at the top of the page. You will see all of your referrals listed in the "Referral Credits" table at the bottom of the page.
5.
You can post your referral link anywhere you want. On your social media channels, your blog, in emails, etc. You can grab your unique referral link by logging in to My Account and clicking the Referrals tab.
6.
There are two ways you can encourage referrals to earn referral credits. Your referred customers can use your unique referral link or enter your phone and number at checkout when asked if a friend referred him.
Don’t forget:
Remind those you are referring to PureTalk to enter your phone number at checkout IF they’ve forgotten to sign up through your referral link.
With the PureTalk Refer a Friend referral program you can earn as many credits as you have friends and save even more on the unlimited data plan of your choice!
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