Read this page as a quick path: scan the headings, use the step blocks, and escalate if the expected result does not happen.
What Is a Double-Sided Referral Program?
A double-sided referral program rewards both parties in a referral: the existing customer who makes the referral (the referrer) and the new customer they bring in (the lead). A single-sided program only rewards the referrer.
In Referral Factory, you choose your reward structure when creating a campaign. The options are double-sided, referrer-only, lead-only, or no reward.
Why Double-Sided Programs Perform Better
The difference comes down to social dynamics. When a referrer shares a single-sided link, they are essentially saying: "Use this business — I get paid if you do." This can feel uncomfortable. People don't want to feel like they're selling their friends.
When a referrer shares a double-sided link, the conversation changes: "Use this link — you'll get 15% off and I'll earn a credit too." Now they are giving their friend a benefit, not asking for a favour. This removes the social friction and makes it far easier for people to share.
What the Research Shows
Double-sided referral programs consistently generate more referrals than single-sided ones. The incentive for the new customer serves two purposes: it gives the referrer something valuable to offer, and it gives the lead a concrete reason to act rather than just browsing.
When Single-Sided Can Work
If your product or service has very high perceived value on its own — or if offering discounts to new customers conflicts with your brand positioning — a referrer-only reward can still be effective. In these cases, a compelling offer on the referral page (even a free consultation or trial, rather than a monetary discount) can play the same role as a lead-side reward.
The core principle is that the person being referred needs a clear reason to act. Whether that comes from a discount, a free trial, or an exceptionally strong value proposition, it needs to be present.