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Glossary Program Types
Refer-a-friend program

Refer-a-friend program

Definition

A type of referral program designed for consumer audiences where customers share a personal link with friends in exchange for a reward when those friends convert.

How Refer-a-friend program work

Customers receive a shareable link from their account dashboard. When a friend clicks the link and makes a purchase or signs up, both the referrer and the new customer typically receive a reward — such as a discount, store credit, or cash. The mechanic is simple by design: share, earn, repeat.

Why it matters for your program

Refer-a-friend programs turn your happiest customers into an acquisition channel. They are particularly effective for consumer products where personal recommendations carry high social proof. Because the reward benefits both parties, the ask feels natural rather than transactional.

Category Program Types
Common in E-commerce, consumer apps, fintech
Payout trigger Friend makes first purchase or signup
Typical rate Fixed reward (e.g. $10–$20 credit)
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