How to Build a Referral Program in 2025 (+80 Examples)

Summary:

Browse 80 + referral program examples from Tesla to Airbnb and see which incentives, placements, and messages drive the highest share-to-sale conversion in 2025.

• Categories include e-commerce, SaaS, subscription boxes, and services
• Popular rewards: double-sided discounts, cash, loyalty points, VIP access
• Non-cash perks convert about 25% better than cash payouts
• Fast start: Plug ReferralCandy into Shopify or WooCommerce to automate links, codes, and tracking

What is referral marketing?

Referral marketing is one of the most cost-effective marketing strategies: using your current customers to spread the word about your brand to new customers.

To turn your loyal customers into your biggest brand advocates, you have to make the referral process as easy as possible for them, and you have to stay top-of-mind with killer referral incentives, like free products and major discounts.

We compiled a truly epic list of the best referral program ideas currently on the market, along with recommendations on what kinds of referral program software to use, incentives to offer, and current customers to target for your very own referral program.

By the end of our list, you will have enough referral program ideas to launch your very own program and open the floodgates of another customer acquisition channel for your business.

Before we begin, let’s break down some basic referral marketing definitions so that we know that we’re all on the same page.

What is a referral program?

A referral program or a “refer-a-friend” program is a marketing strategy used by many top ecommerce brands to incentivize existing customers to recommend the brand and its products to their family and friends.

A referral program is a deliberate, systematic way of getting people to make referrals to your business. Referral programs are often called word-of-mouth marketing, because they reward existing customers for sharing and incentivize new customers to try out your brand.

Customers are rewarded with referral incentives, such as free cash, major discounts, or a free month of subscription. While there is an upfront cost to the business, referral programs significantly increase long-term revenue by making loyal customers out of your existing customer base.

If you are wondering why you should have a referral program and how to run one, let’s take a look at how the top ecommerce brands are running their referral programs and the results they have achieved.

Before we begin, let’s quickly go through the basics of referral programs.

Why do I need a referral program?

One of the biggest stresses of any business is finding a solid customer acquisition channel, or basically, bringing in new customers. When you have a solid referral marketing program, however, you let your existing customers bring new buyers to your brand. 

This not only significantly reduces spending on bringing new customers to your shop, but also increases customer retention, which is a very good thing.

Why?

Because loyal customers have a higher conversion rate than new customers and spend more per transaction, making customer referral programs the most cost-effective and lucrative marketing strategy that your business can possibly employ.

How does a referral program work?

People don’t make as many referrals as they intend to for a variety of reasons. A referral program helps make their mind up with a tangible reward for referrals.

Modern referral programs, or refer-a-friend programs, use software to track referrals made by happy customers through either a referral code, a rewards card, or a referral link.

Depending on the referral campaign, customers will usually receive some kind of referral bonus or benefit when they refer a friend. Referral marketing software automates the payout of these referral rewards.

This referral process creates a natural word-of-mouth marketing experience for your brand, which ultimately increases both your customer retention rate and your revenue.

To find out more, check out how ReferralCandy works.

How do I create a referral program?

The best way to bring in potential customers is to first focus on your existing satisfied customers. Rather than just offering cash rewards or free gifts in hopes that your customers will refer a friend to your shop, it takes a little bit of planning to set up a referral program that works.

1. Get clear about your goals

Before creating a complex ambassador program or launching tons of marketing campaigns (of any kind), it’s important to be clear about what your goals are for the program. 

This will help guide you as you brainstorm referral marketing ideas. Some questions to consider are:

• What are you hoping to get out of your rewards program?
• Do you want more customers? Or just bigger purchases by your existing customers?
• Are you trying to get a higher conversion rate and increase sales?

You can certainly achieve each of these goals, but it might require a different referral campaign for each goal. So it’s important to be clear about your goals before beginning.