SKILL.md
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Dimension
Referral
Affiliate
Influencer
Who
Existing users
Professional promoters
KOLs
Incentive
Discounts, credits
Commission
Fees, product
Barrier
Low (all users)
Medium
High
Conversion
3%-5%
Varies
Varies
Referral vs affiliate: Referral needs no landing page or application; integrated in dashboard. Affiliate requires landing page and approval.
Reward Models
Model
Use
Two-way
Both referrer and referee get rewards; highest participation
One-way
Only referrer rewarded; cost control
Tiered
Rewards increase with referral count (e.g. $10 for 1-5, $15 for 6-10, $20 for 11+); incentivizes volume
Benchmark: Rewards typically 10%-30% of product price; ~11% off or ~$21 value; weak incentives = low participation. Triggers: signup, purchase, activation, or sustained use.
Mechanism Types
Type
Use
Link-based
Unique referral link; easy to implement; accurate tracking; share via email, social, SMS; works for web and app
Code-based
Referral code (e.g. FRIEND20); memorable; offline events; mobile-friendly input
Social referral
Share buttons (Facebook, X, LinkedIn); viral spread; friend trust; young users
Tracking & Attribution
Method
Use
Cookie
Web apps; 30-90 day window
URL params
All platforms; persistent in link
Referral code
Mobile, offline; manual entry
Account association
Long-term tracking; subscription products
Attribution window: 30-90 days typical; 180 days for subscription. First-touch attribution to avoid double-counting.
Fraud Prevention
Risk
Action
Self-referral
Detect same device, payment, IP
Fake accounts
Validate email, payment; monitor patterns
Bulk/automation
Rate limits; anomaly detection
Per-user cap
e.g. Max 10 referrals per user
Use tool anti-fraud features; audit referrals regularly.
Design Framework
- Reward structure: Type (cash, discount, credits, free service); amount (10%-30% of price); trigger; cap
- Tracking: Choose method; set attribution window; first-touch rule
- UX: One-click share; clear rules; dashboard with referral data; notify on success
- Fraud prevention: See above
- Monitor & optimize: Referral rate, conversion, CAC, LTV; A/B test rewards and flow
Best Practices
- Run multiple programs: Target different audiences, stages, goals
- Tiered rewards: Motivate top performers; progressive incentives
- Friction-free sharing: Mobile-friendly; one-click share
- Time-boxed incentives: "Refer this week for $15 off" creates urgency
- Placement: Web, email, app, in-product touchpoints; dashboard integration primary
Implementation
Approach
Use
Self-build
Full control; low cost; URL params or cookie + reward logic + fraud checks; open-source (e.g. RefRef) for faster start
Third-party
Fast launch; Cello, Viral Loops, ReferralCandy (e-commerce), Impact (enterprise); monthly fee
Placement: Most programs integrate in product dashboard; no landing page or application needed. Optional landing page for value prop, rewards, and case studies.
Startup cost: Typically hundreds for tools + dev.
Tools
Tool
Use
Cello
SaaS; AI-driven automation
Viral Loops
Referral + waitlist + contests
ReferralCandy
Shopify, e-commerce
Impact
Enterprise; unified platform
RefRef
Open-source; self-hosted
KPIs
Referral rate, conversion, CAC, LTV of referred users, referred-user retention.
Output Format
- Reward model and mechanism type (link/code/social)
- Tracking approach and attribution window
- Placement (dashboard vs landing page)
- Fraud prevention measures
- Tool selection (self-build vs third-party)
- KPI framework
Related Skills
- discount-marketing-strategy: Referral rewards (discounts, credits); 10–30% benchmark; campaign design
- affiliate-marketing: Different audience; can run both
- influencer-marketing: Brand building vs. user-driven growth
- directory-submission: Directory submission for discovery; referral for user-driven growth
- analytics-tracking: Referral link tracking, UTM