Should I Use One-Sided or Double-Sided Referral Rewards?

A one-sided referral reward means only one person in the referral receives a reward.

Most commonly, the Referrer gets rewarded:

But you could also reward only the Lead:

A one-sided program can be a good choice when one side already has a strong reason to participate, when you want to keep costs down, or when there are restrictions on the incentives you can offer.

A double-sided referral reward means both the Referrer and the Lead receive something.

You may also hear this described as a give-and-get referral program.

The two rewards do not have to be the same. You could offer the Lead a discount while giving the Referrer cash, account credit, loyalty points, a gift card, or another reward.

Double-sided rewards give both people a reason to participate.

For the Referrer, this can make sharing feel more natural. Instead of simply saying, “Sign up so I can earn a reward,” they also have something valuable to offer their friend.

For the Lead, the referral comes with an additional reason to take the next step, such as a discount, credit, free trial or joining benefit.

Referral Factory research: Referral Factory has published guidance showing that double-sided structures are common across referral programs and are worth considering when rewarding both sides makes sense for the business. Read more about double-sided referral programs

Double-sided rewards are not always necessary. A one-sided structure may make sense when:

your product or service already gives the Lead a strong reason to act

your margins do not support two rewards for every successful referral

you want to keep the offer very simple

your industry has legal or compliance restrictions on what can be offered

the Lead already receives another meaningful benefit, such as a free consultation or trial

For example, Referral Factory's financial-services guidance highlights situations where regulations can limit incentives offered to a prospective customer. In cases like these, rewarding only the existing customer may be the more appropriate structure. See the financial-services reward guide

A double-sided structure is worth considering when both parts of the referral journey need encouragement.

The Referrer needs a reason to recommend you, while the Lead may need a reason to sign up, book, buy or become a customer.

This can be particularly useful when there is a clear benefit you can give the new customer, such as:

a first-purchase discount

a free trial

account credit

bonus points

a free consultation

a joining offer

The trade-off is cost. If you reward both people, consider the total value of both incentives when deciding whether the program makes financial sense.

No. In many referral programs, different rewards make more sense because the Referrer and Lead are at different points in their relationship with your business.

Rather than making the rewards identical, think about what will feel valuable to each person.

What will motivate the Referrer? Is there a meaningful reason for your customers to recommend you?

What will motivate the Lead? Is the recommendation itself enough, or would an additional offer make them more likely to act?

What can you afford? Consider the total cost of the reward compared with the value of acquiring a new customer.

Are there any restrictions on the rewards you can offer? This is particularly important in regulated industries. Check any legal, tax or compliance requirements that apply to your business.

You do not need to choose double-sided simply because it is common. The right structure is the one that gives the people involved a compelling reason to participate while still working for your business.

In Referral Factory, a Reward Rule is created for either the Referrer or the Lead.

For a one-sided referral program, create a Reward Rule for the person you want to reward.

For a double-sided referral program, create two Reward Rules:

One Reward Rule for the Referrer

One Reward Rule for the Lead

Each rule can have its own reward type, value, trigger and issuing method. This means the Referrer and Lead can receive completely different rewards if that works better for your program.