Read this page as a quick path: scan the headings, use the step blocks, and escalate if the expected result does not happen.
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Referral Factory does not automatically know when someone has converted. You have to tell us! This surprises many new users who expect the platform to detect conversions on its own — but that is not how it works.
A conversion (or "qualification") is whatever action you define as a successful referral. It might be a first purchase, a completed sign-up, a paid subscription, a booked appointment, or any other milestone that matters to your business. Because that definition is unique to every business, you configure it yourself.
If you are evaluating referral tracking software, this qualification layer is the part that turns clicks into commercially useful reporting.
faq how does referral factory know when a referral has converted:
Leads view used to review qualification status and pipeline progression.
Why it works this way
Referral Factory is not connected to your product, website, or payment system by default. It runs your referral program — generating referral links, tracking who referred whom, and issuing rewards — but it needs a signal from somewhere in your tech stack to know when the referred person has actually done the thing you care about.
That signal is called a qualification trigger.
How to configure your qualification trigger
Referral Factory gives you six ways to send a qualification signal:
| Method | Best for |
|---|---|
| CRM integration (HubSpot, Salesforce, Intercom) | Businesses tracking customers in a CRM |
| Stripe integration | Businesses taking payments via Stripe |
| Referral Factory API | Developers with custom systems |
| Inbound webhook | Tech teams who prefer event-driven automation |
| Automation tools (Zapier, Make, n8n) | No-code teams connecting tools that aren’t natively integrated |
| Manual qualification | Small programs or fallback option |
See The 6 ways to qualify leads in Referral Factory for full details on each method.
faq how does referral factory know when a referral has converted: How to configure your qualification trigger
Integrations hub where CRM and API connections are configured and monitored.
Common misconceptions
"I connected my CRM — does that mean referrals qualify automatically?"
No. Connecting your CRM is only the first step. You also need to configure a qualification rule — for example, "qualify the referral when a HubSpot contact's Lifecycle Stage changes to Customer." Without that rule, the integration sends lead data to your CRM but does not qualify referrals.
"Can qualification happen on a lead submission?"
No — when someone submits their information via a referral link, their lead status will be set to Pending. However, if you wish to reward your leads for submitting their details at this stage, you can do so via rewards configuration.
"What if my conversion event doesn't happen in a tool Referral Factory integrates with?"
Use the API or an automation tool like Zapier to bridge the gap. Almost any system can send a qualification signal with the right setup. You can also qualify manually by uploading a list of your current customers. Referral Factory will check if any new leads appear and qualify them.
faq how does referral factory know when a referral has converted:
Leads view used to review qualification status and pipeline progression.