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| When you create a referral program, one of the first decisions is who should get rewarded. You can reward only the person making the referral, only the person being referred, or reward both people. The right choice depends on what will motivate each person, what you can afford, and any rules that apply in your industry. |
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What is a one-sided referral reward?
| Example: Refer a friend who becomes a customer and earn a $50 gift card. |
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| Example: Get 20% off your first order when a friend refers you. |
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What is a double-sided referral reward?
| Example: Give your friend 20% off their first order and get $25 credit when they buy. |
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What is the difference between one-sided and double-sided rewards?
| One-sided reward | Double-sided reward | |
|---|---|---|
| Who gets rewarded? | Either the Referrer or the Lead | Both the Referrer and the Lead |
| Example | Referrer earns $50 | Referrer earns $50 and Lead gets $25 off |
| Cost | Usually lower | Usually higher |
| Reason for the Referrer to share | They can earn a reward | They can earn a reward and give their friend something |
| Reason for the Lead to act | Comes from your product or offer | They also receive a referral benefit |
Why do businesses use double-sided referral rewards?
When does a one-sided referral reward make sense?
When does a double-sided referral reward make sense?
Do the Referrer and Lead need to get the same reward?
| Business type | Lead reward | Referrer reward |
|---|---|---|
| Ecommerce | Lead gets 20% off their first order | Referrer gets $20 store credit |
| SaaS | Lead gets their first month free | Referrer gets account credit |
| Financial services | Lead receives a joining benefit | Referrer receives a gift card |
| Loyalty program | Lead receives bonus points when joining | Referrer receives points when the Lead qualifies |
How do I choose between one-sided and double-sided rewards?
How do one-sided and double-sided rewards work in Referral Factory?
| Example: Give the Lead a discount for becoming a customer while giving the Referrer a $50 gift card once that referral qualifies. |
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