Brand Advocates, Brand's Community, Brands, Social Marketing

How to Make Money with Paid Referrals – A Beginner’s Guide – Marketing

Paid referrals programs are an effective way for businesses to attract new customers. They’re also a great way to build relationships with existing clients.

Retail stores create their own referral programs as a way to reach more people. It’s a marketing strategy that asks previous happy, loyal customers to become paid referrals. They’re incentivized to do so—in return for gift cards to redeem for discounts on future purchases, free products, and more.

Referral marketing was rated the most effective tactic used by marketers at all stages of the sales funnel. Why? Because new customers earned via referral have pre-established trust in your brand. 

An old (but still relevant) Nielsen study shows that recommendations from friends and family are one of the most credible forms of advertising.

Some 92% of consumers trust recommendations over traditional forms of advertising.

For more recent data: 18% of Gen X consumers say they use word of mouth as their main source of brand discovery. It beats newspapers, blogs, and magazines.

What Are Paid Referral Programs?

Paid referral programs are a type of affiliate program where people earn money when they refer others to a business. These programs usually offer a commission based on the number of referrals made, discounts on future purchases, brand credit, free products, and more.

How Do Paid Referrals Work?

Paid referrals are similar to affiliate programs in that you earn money when someone signs up through your link. A referral program works when a brand invites current customers to become brand ambassadors. They join their referral marketing program and get a unique code or link to share with their network.

Why Should You Join One?

There are two main reasons why you should join one of these programs.

  1. First, you can make some extra cash by referring other people.
  2. Second, you can help businesses build their brand awareness.

How Can You Earn From Them?

There are two main ways to make money from paid referrals. One is by using an existing platform where people sign up for free accounts. You can use your own social media to promote your paid referrals and earn money using your networks.

Learn how to use Instagram for paid referrals

The other option is to set up your own paid referral program. If you do this, you’ll need to find a company willing to pay you a monthly fee. You can then promote their service to your list of subscribers.

How Much Will You Earn?

It depends on the type of product or service you’re promoting. However, some companies will pay anywhere between $5-$50 per lead.

Create your account at VoxFeed and find out the active paid referrals program active for you.

Find out more about VoxFeed