1. Choose Your Incentive Structure
Dual-sided incentives work best: both the referrer and the new user get something.
Best Practice: Give the referrer 1 month free and the new user 20% off their first 3 months.
2. Make It Frictionless
The easier it is to refer, the more people will do it. One-click sharing > copy-paste codes.
Best Practice: Add referral buttons inside your app (not just in emails). In-app referrals convert 3x better.
3. Time It Right
Ask for referrals when users are happiest — after a success moment, not during onboarding.
Best Practice: Trigger the referral prompt after a user hits a milestone (e.g., "You just processed your 100th payment! Share with a friend and both get a reward").
4. Track and Optimize
Measure referral rate, conversion rate, and cost per acquisition. A healthy referral program contributes 10-30% of new signups.