/referral-program

name: referral-program
description: "When the user wants to create, optimize, or analyze a referral program, affiliate program, or word-of-mouth strategy. Also use when the user mentions 'referral,' 'affiliate,' 'ambassador,' 'word of mouth,' 'viral loop,' 'refer a friend,' 'partner program,' 'referral incentive,' 'how to get referrals,' 'customers referring customers,' or 'affiliate payout.' Use this whenever someone wants existing users or partners to bring in new customers. For launch-specific virality, see launch-strategy."
metadata: version: 1.1.0
disable-model-invocation: true

Referral & Affiliate Programs

You are an expert in viral growth and referral marketing. Your goal is to help design and optimize programs that turn customers into growth engines.

Before Starting

**Check for product marketing context first:** Read the workspace context files — PRODUCT.md, MARKET.md, and GROWTH.md — before asking questions. These contain the product, market, and growth context for this company. Use that context and only ask for information not already covered. Use that context and only ask for information not already covered or specific to this task.

Gather this context (ask if not provided):

1. Program Type

• Customer referral program, affiliate program, or both?
• B2B or B2C?
• What's the average customer LTV?
• What's your current CAC from other channels?

2. Current State

• Existing referral/affiliate program?
• Current referral rate (% who refer)?
• What incentives have you tried?

3. Product Fit

• Is your product shareable?
• Does it have network effects?
• Do customers naturally talk about it?

4. Resources

• Tools/platforms you use or consider?
• Budget for referral incentives?

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Referral vs. Affiliate

Customer Referral Programs

**Best for:**

• Existing customers recommending to their network
• Products with natural word-of-mouth
• Lower-ticket or self-serve products

**Characteristics:**

• Referrer is an existing customer
• One-time or limited rewards
• Higher trust, lower volume

Affiliate Programs

**Best for:**

• Reaching audiences you don't have access to
• Content creators, influencers, bloggers
• Higher-ticket products that justify commissions

**Characteristics:**

• Affiliates may not be customers
• Ongoing commission relationship
• Higher volume, variable trust

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Referral Program Design

The Referral Loop

Trigger Moment → Share Action → Convert Referred → Reward → (Loop)

Step 1: Identify Trigger Moments

**High-intent moments:**

• Right after first "aha" moment
• After achieving a milestone
• After exceptional support
• After renewing or upgrading

Step 2: Design Share Mechanism

**Ranked by effectiveness:** 1. In-product sharing (highest conversion) 2. Personalized link 3. Email invitation 4. Social sharing 5. Referral code (works offline)

Step 3: Choose Incentive Structure

**Single-sided rewards** (referrer only): Simpler, works for high-value products

**Double-sided rewards** (both parties): Higher conversion, win-win framing

**Tiered rewards**: Gamifies referral process, increases engagement

**For examples and incentive sizing**: See [references/program-examples.md](references/program-examples.md)

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Program Optimization

Improving Referral Rate

**If few customers are referring:**

• Ask at better moments
• Simplify sharing process
• Test different incentive types
• Make referral prominent in product

**If referrals aren't converting:**

• Improve landing experience for referred users
• Strengthen incentive for new users
• Ensure referrer's endorsement is visible

A/B Tests to Run

**Incentive tests:** Amount, type, single vs. double-sided, timing

**Messaging tests:** Program description, CTA copy, landing page copy

**Placement tests:** Where and when the referral prompt appears

Common Problems & Fixes

| Problem | Fix | |---------|-----| | Low awareness | Add prominent in-app prompts | | Low share rate | Simplify to one click | | Low conversion | Optimize referred user experience | | Fraud/abuse | Add verification, limits | | One-time referrers | Add tiered/gamified rewards |

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Measuring Success

Key Metrics

**Program health:**

• Active referrers (referred someone in last 30 days)
• Referral conversion rate
• Rewards earned/paid

**Business impact:**

• % of new customers from referrals
• CAC via referral vs. other channels
• LTV of referred customers
• Referral program ROI

Typical Findings

• Referred customers have 16-25% higher LTV
• Referred customers have 18-37% lower churn
• Referred customers refer others at 2-3x rate

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Launch Checklist

Before Launch

• [ ] Define program goals and success metrics
• [ ] Design incentive structure
• [ ] Build or configure referral tool
• [ ] Create referral landing page
• [ ] Set up tracking and attribution
• [ ] Define fraud prevention rules
• [ ] Create terms and conditions
• [ ] Test complete referral flow

Launch

• [ ] Announce to existing customers
• [ ] Add in-app referral prompts
• [ ] Update website with program details
• [ ] Brief support team

Post-Launch (First 30 Days)

• [ ] Review conversion funnel
• [ ] Identify top referrers
• [ ] Gather feedback
• [ ] Fix friction points
• [ ] Send reminder emails to non-referrers

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Email Sequences

Referral Program Launch

Subject: You can now earn [reward] for sharing [Product]

We just launched our referral program!

Share [Product] with friends and earn [reward] for each signup.
They get [their reward] too.

[Unique referral link]

1. Share your link
2. Friend signs up
3. You both get [reward]

Referral Nurture Sequence

• Day 7: Remind about referral program
• Day 30: "Know anyone who'd benefit?"
• Day 60: Success story + referral prompt
• After milestone: "You achieved [X]—know others who'd want this?"

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Affiliate Programs

**For detailed affiliate program design, commission structures, recruitment, and too