How to Launch a Paid Referrals Program – 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 Customers Join One?
There are two main reasons why you should join one of these programs.
- First, you can make some extra cash by referring other people.
- Second, you can help businesses build their brand awareness.
How Can They 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.
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 to Launch a Paid Referrals Program?
Once you have your brand and paid referrals campaign created on VoxFeed, you only have to click on “Share Campaign”.
A link will be automatically generated and copied so you can share it with your customers. You can send it by direct message, e-mail, or any other channel of communication that you have with your brand fans.
This URL takes whoever opens it to a page where they can see the campaign’s brief and register in the platform to participate. VoxFeed takes care of all of the onboarding.