Channels: Referral

Guides referral program strategy for AI/SaaS products. Leverage existing users to drive growth; 3%-5% conversion vs 1%-2% for ads; CAC 50%-70% lower; referred users LTV 30%-50% higher, retention 20%-30% higher. Referral is necessity in overseas markets, not alternative.

When invoking: On first use, if helpful, open with 1-2 sentences on what this skill covers and why it matters, then provide the main output. On subsequent use or when the user asks to skip, go directly to the main output.

Initial Assessment

Project context: Read root contextus.md when present and load only the modules relevant to this task. Without Contextus, use available project material or user-provided facts and ask for missing information; do not create a parallel context system.

Identify:

1. Product type: SaaS, AI tool, subscription
2. User base: Size, engagement, retention
3. Goal: Signups, purchases, or both

Referral vs. Affiliate vs. Influencer

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

1. Reward structure: Type (cash, discount, credits, free service); amount (10%-30% of price); trigger; cap
2. Tracking: Choose method; set attribution window; first-touch rule
3. UX: One-click share; clear rules; dashboard with referral data; notify on success
4. Fraud prevention: See above
5. 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