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Choosing the right reward
Your reward is the single biggest lever you control when it comes to how many referrals your program generates. A reward that is too small, irrelevant, or difficult to claim will quietly kill participation. Getting this right does not require creativity — it requires matching the reward to what your audience actually values.
Cash vs. discounts vs. credits
For most businesses, cash (or a gift card equivalent) is the simplest and most universally motivating reward. If you have a B2B product, a service business, or operate in finance or insurance, cash tends to be the strongest motivator because your customers may not make repeat purchases and have no use for a discount on a future transaction.
Discounts and account credits work well for businesses where customers buy repeatedly — e-commerce brands, SaaS products, subscription services, gyms. The reward has immediate, tangible value within the relationship the customer already has with you.
Percentage-based commissions (recurring rewards) are particularly suited to SaaS businesses and affiliate-style relationships where you want to reward advocates on an ongoing basis tied to revenue.
How much should you offer?
A useful benchmark is your current cost per lead from paid advertising. If you are paying §50 per lead through Google Ads, offering a £50–£60 reward per qualified referral is reasonable — you are paying roughly the same but getting a significantly higher-quality lead that converts at a much higher rate. The net ROI is almost always better.
Avoid overthinking the amount. A reward that is clearly fair and easy to understand will outperform a complex tiered structure that requires explanation.
Match the reward to the effort
The reward needs to feel proportionate to what you are asking someone to do. Referring a friend to a low-cost subscription product is a different ask than referring someone to take out a loan or install solar panels. High-effort referrals in high-ticket industries need higher rewards.
Don't forget the Lead side
If you are running a double-sided program, the reward you offer to the new customer (the lead) is just as important as what you offer the referrer. This is the offer that appears on the Referral Link Page — the first thing a referred friend sees. It needs to be compelling enough to make them want to take action immediately.