Referral programs are a low-cost, high-reward way to scale your business quickly using your best asset: your customers. By turning your customers into brand advocates, you can lower customer acquisition costs and increase lifetime value.
If you’re ready to build a customer-led growth strategy, this list of the best referral programs across various business models will inspire you.
Referral Program Examples For Every Industry
- Retail & E-commerce Referral Program Examples
- Travel & Transportation Referral Program Examples
- Software Referral Program Examples
- Finance Referral Program Examples
- User Service Program Examples
Retail & E-commerce Referral Program Examples
1. Madison Reed
Madison Reed is a haircare company that delivers color treatment products, hair accessories, styling tools, and more. With the company’s invite a friend program, advocates get a $15 credit for every referred friend who signs up, and referrals get a $15 discount off their first purchase.
Referral Program Pro Tip: Use language that grabs attention and suggests exclusivity. Madison Reed, for example, uses phrases like, “Share the secret of hair color … with your friends and family,” to create a sense of intrigue. For referrals, this type of enticing language can influence the perceived value of a product and convert more people.
2. Glossier
Cult favorite beauty company Glossier’s strong referral program helped it become a staple among Millennials and Gen Z.
Advocates get a $10 store credit when a referred customer clicks on their personalized referral link, creates a new account, and places an order. The caveat is that all three steps must be completed in the same website session for the discount to apply. For referred friends, their reward is 10% off their first purchase from Glossier’s website.
Referral Program Pro Tip: Add a time limit to your rewards to create a sense of urgency. Glossier’s referred customers must complete a purchase within 90 days of receiving their reward, encouraging them to purchase quickly.
Read our detailed takedown of Glossier’s marketing strategy to learn more.
3. MOO
Moo is an online print and design company with a creative dual-sided referral program that offer multiple ways to earn rewards. Customers who refer a friend earn a $20 gift card for every successful referral. When customers refer a business (with a minimum of 10 employees), that reward goes up to $150. Referred friends get 25% off their first order when they sign up, and referred businesses get a dedicated account manager, discounts on products, and more.
Referral Program Pro Tip: Offer tiered rewards where customers can earn more depending on how many people they refer. By presenting multiple options, you’re increasing the customer’s perceived value of a reward based on how it compares to other tiers. Just make sure to clearly explain the differences between each tier and the steps to earning those rewards.
4. Thinx
Thinx is a women’s health-focused underwear retailer that designs and sells period underwear. The company offers $10 to advocates and their referred friends who participate in their refer-a-friend program.
Referral Program Pro Tip: Use your referral program messaging to highlight how your product solves an unmet need. Thinx, for example, refers to its successful referral program as “the period revolution.” Consumers are drawn to innovative products. That’s because purchasing those products makes them feel like they’re part of a bigger initiative.
5. Brooklinen
Brooklinen lovingly refers to its products as “The Internet’s Favorite Sheets.” Its referral program is integral to their fast growth. They offer various rewards to customers who complete specific actions, such as following the company on Instagram or leaving a product review. The most attractive incentive, however, is their “Refer-A-Friend” offer. Customers and referrals each get $25 off their next purchase of $100 or more when participating.
Referral Program Pro Tip: In addition to creating a pop-up dedicated only to your referral offer, consider including it on a landing page that lists all your rewards programs. This gives your customers lots of options to save and lets them see how they can earn more money for future products.
Read our detailed takedown of Brooklinen’s direct-to-consumer marketing strategy to learn more.
6. HelloFresh
HelloFresh is a subscription-based meal-kit delivery service that expertly uses a referral program to scale their business. An existing customer can log in to their account to access their referral code. New subscribers receive $110 off their first order, and existing customers get a $10 credit.
Referral Program Pro Tip: Give customers the option to share a referral code via social channels and provide a shareable link. Give customers options to make it easier to invite friends via the channels they use most.
Read our detailed breakdown of Hellofresh’s marketing strategy.
7. Blue Bottle Coffee
Selling coffee, brewing equipment, mugs, and more, Blue Bottle Coffee got its start in Oakland, California. Since then, they’ve grown to serve customers across the United States, Japan, and Korea. Customers and friends participating in the company’s referral program each get a $20 credit for future purchases.
Referral Program Pro Tip: Consider using personalized shareable codes so they’re easy for customers to remember and share anywhere. Blue Bottle Coffee includes their name and a randomly generated code. Exchange the random code for the customer’s name to make the code more memorable and easier to share.
Travel & Transportation Referral Program Examples
8. HotelTonight
HotelTonight is a travel booking app that offers users last-minute, discounted hotel deals. When advocates use the app to share their referral code with friends and family, they get $25 toward their next booking. Referred friends also receive $25 toward their first booking – provided the booking is at least $135.
Source: HotelTonight
Referral Program Pro Tip: Even though advocates can share their referral code in places like email and social media, they receive credit only when their friends download the HotelTonight app and make a minimum-purchase booking. Use this technique if your goal is to increase engagement with your mobile app.
9. Outdoorsy
Outdoorsy is a vacation rental company similar to Airbnb but with an adventurous side, letting you rent RVs, cabins, tent sites, and other camping shelters. With their referral program, invite your friends to create an account. If they use your referral link, they get $50 off their first trip, and you get $75 off your next trip. If your referral lists their own RV or campground, you’ll make $100.
Referral Program Pro tip: Referral programs can do more than just generate sales. Here Outdoorsy is using them to generate host sign-ups as well.
10. Marriott Hotel
Marriott uses a point-based system to reward customers for referrals. Members can refer up to five new customers annually, potentially earning points for each. Bonus points can be redeemed for a number of rewards, including discounted flights, rental cars, gift cards, concert tickets, and travel packages.
Referral Program Pro Tip: Use a points-based system instead of discounts to save money and to keep your customers coming back. Marriott, for example, gives new referred customers 2,000 bonus points after their first five stays, incentivizing them to book more trips to earn their reward. Plus, the ability to rack up points for a number of redeemable rewards drives customer loyalty.
11. Citi Bike
Annual members who use Citi Bike‘s bike-sharing system can get a free month for each successful referral. Citi Bike’s terms explain that advocates can earn rewards for up to 24 referrals, translating into two free years of service. This is a great incentive!
Referral Program Pro Tip: Spell out the long-term benefits advocates stand to gain from participating in the program. The more they stand to gain over time, the more likely they’ll be to participate.
Software Referral Program Examples
12. Gusto
Gusto offers U.S. businesses cloud-based payroll, benefits, and HR management software. Their incentive program offers accountants a way to grow their business. Based on a four-tier system, every client an accountant refers to Gusto will earn rewards. The more clients who sign up for Gusto, the higher the rewards. Accountants also get rewards for referring other accountants.
Referral Program Pro Tip: In business, the best referral programs position themselves as a partnership. Gusto does this well by positioning its referral program to help accountants grow their business and get more clients. Don’t just ask your customers to be advocates for your brand – be advocates for them as well. This will make participating in the program feel more like a reward than an ask.
13. Airtable
Airtable is a project management and organizational tool built to help SMB teams stay organized. Their referral program gives advocates a $10 credit every time they refer someone new to the platform. When a referrer builds up enough referral credits, they can use those credits to upgrade their account to a more premium plan.
Referral Program Pro Tip: When it comes to products like project management, more capabilities mean more efficient workflows. Allow customers to build up their referral credits to purchase higher-value rewards. This will motivate them to refer more users.
14. Dropbox
Dropbox is an online data storage platform. Customers with a basic Dropbox account get 500MB of storage added to their account for every referral they make, up to 16GB total. For Dropbox Plus and Professional customers, the reward per referral goes up to 1GB each (with a 32GB max).
Referral Program Pro Tip: Include a referral status bar in your program so customers can see how much they’ve earned to date. You’ll give them a goal to aim for so they keep sharing.
15. Justworks
Justworks is an online platform that helps businesses manage payroll, employee benefits, and HR responsibilities. Justworks doesn’t mess around when it comes to referrals. For every company that signs up through a referral link, the referring customer earns $100 per employee. So if a customer refers a company with 100 employees, the customer will get $10,000 in rewards for a successful sign-up.
Referral Program Pro Tip: To show companies how quickly rewards can grow, share examples. Justworks clarifies that the larger the company a user refers to, the more money the user can earn. After all, a $10,000 reward opportunity is pretty hard to pass up.
Finance Referral Program Examples
16. Intuit QuickBooks
Quickbooks accounting software offers referrers a $100 prepaid Visa giftcard for each successful referrer. Plus, the referred customer gets a 50% discount.
Referral Program Pro Tip: Put emphasis on the fact that advocates are helping their friends and family improve their user experience by partnering with you. QuickBooks, for example, encourages customers to help their friends “focus on their passion.” This makes the referral program feel more personal, increasing the follow-through rate.
17. Robinhood
Robinhood is an online investment app. For every new friend a customer invites to join Robinhood, both the customer and the referral earn free stock (up to $500 a calendar year).
Referral Program Pro Tip: For investment companies like Robinhood, disclosing any financial information customers should know when investing in stocks is good practice. Robinhood, for example, clearly explains how customers should report the income they receive from free stock when filing their taxes. Laying out this type of information will help referrals new to investing feel more comfortable with becoming a customer.
Read our detailed breakdown of Robinhood’s referral marketing program.
18. American Express
The American Express referral program can earn customers 15,000 Membership Rewards points (up to 55,000 per calendar year) for referrals who sign up, while referrals get at least 10,000 points, depending on which card they sign up for.
Referral Program Pro Tip: Points are a great referral incentive because they can be accumulated over time and used for big purchases. Consider partnering with retail companies to show customers what they can purchase with points earned (e.g., major appliances).
19. Acorns
Acorns is a financial investment service that specializes in micro-investing and robo-investing. When customers refer friends to Acorns using a custom referral link, both parties receive a $5 bonus. Bonuses are rewarded only when a friend’s account is approved and they make a successful investment.
Referral Program Pro Tip: Offer referrals a reward that gets them started with your app. With a $5 credit already added to their account, referred customers only need to choose their investment to get started. It’s a way to engage new customers with your brand quickly and with minimal effort.
User Service Program Examples
20. T-Mobile
T-Mobile is one of the largest mobile phone distributors in the world, with a strong referral program to boot. For every friend you refer, you get $50, with a cap of $500 a year.
Referral Program Pro tip: If you have a tight budget, consider adding a cap to your referral reward. It’s an easy way to build a budget for your marketing strategy – you know exactly how much you will spend on referrals for the year.
21. Sling TV
Sling TV is a streaming service that lets users find and watch shows that match their unique preferences. When advocates refer a friend, they both receive $20 off their first month.
Referral Program Pro Tip: For service providers, spreading your referral reward over several months encourages customer retention. That’s because the more customers get used to a service, the more likely they will stick with it to avoid change.
The Best Referral Programs Are Managed with a Growth Marketing Tool
The easiest way to manage a referral marketing program is with a growth marketing tool like Extole.
A growth marketing tool can boost your customer-led growth strategy by letting you personalize and segment your referral program, offer cross-platform engagement, and use referral insights to fine-tune your program.
Once you set up a tool, it can automate many day-to-day responsibilities, like tracking referrals and managing payouts. Best of all, it’ll free up your time to focus on growing your business.
Ready to get started? Request a demo with one of our experts and experience a powerful combination of events, rewards, and real-time personalized content.
Frequently Asked Questions About Referral Programs
What is a referral program?
A referral program is a marketing strategy that rewards customers for recommending a business to friends, family, or colleagues. Both the referrer and the new customer often receive benefits, such as discounts, points, or credits.
How do referral programs work?
Referral programs typically provide customers with a unique link or code to share. When someone uses that link to sign up or make a purchase, both parties receive a reward. The process encourages word-of-mouth marketing while reducing customer acquisition costs.
Why are referral programs effective?
Referral programs are powerful because people trust recommendations from friends and family more than ads. This builds credibility, lowers acquisition costs, and increases customer lifetime value.
What industries benefit most from referral programs?
Referral programs can work in almost any industry. Some of the most common include:
- Retail & e-commerce (e.g., Glossier, Brooklinen)
- Travel & transportation (e.g., Marriott, HotelTonight, Citi Bike)
- Software & SaaS (e.g., Gusto, Airtable, Dropbox)
- Finance (e.g., Robinhood, American Express, Acorns)
- Services (e.g., T-Mobile, Sling TV)
What types of rewards can you offer in a referral program?
Rewards vary by industry, but common incentives include:
- Cash or gift cards
- Discounts or credits toward future purchases
- Free products or services
- Loyalty or rewards points
- Tiered bonuses for multiple referrals
How do referral programs compare to affiliate programs?
Referral programs target existing customers and reward them for inviting friends. Affiliate programs, on the other hand, usually partner with bloggers, influencers, or publishers who promote a brand to their larger audience in exchange for commission.
How can I make my referral program successful?
Some best practices include:
- Make sharing easy with links and social integrations
- Offer rewards for both referrers and referees
- Use urgency (time limits, seasonal campaigns) to drive action
- Provide visible progress (like a status bar) so customers see what they’ve earned
- Continuously test messaging and rewards for higher conversion
Do referral programs help with customer loyalty?
Yes. Referral programs not only attract new customers but also increase engagement with current ones. Rewards, credits, and points keep people coming back, boosting retention and lifetime value.
How much does it cost to run a referral program?
Referral programs are often more cost-effective than traditional advertising because you only pay when you acquire a customer. The cost depends on the reward structure, but overall, it’s a low-cost, high-reward strategy.
What tools can help manage referral programs?
Growth marketing platforms like Extole make it easy to design, launch, and manage referral programs at scale. They help with personalization, cross-channel sharing, tracking referrals, and managing payouts — while giving you insights to optimize performance.
