Refer a friend is a strategy used in referral marketing where existing customers are encouraged to recommend products to friends and family. As an existing customer, you share a referral code in order to earn rewards when your friends and family sign up.
Research has indicated that 92% of shoppers trust referrals if they are from people they know. Also, over 50% of consumers are likely to take part in a referral scheme if they are offered incentives and rewards.
A referral code usually comes in the format of a number or word and is provided so you can share it with other people. The people that receive the code then use it to sign up to the relevant brand(s).
Once they use the referral code, you should get your reward which tends to come in the form of credit, vouchers and cash. The code used is normally unique to enable the company to track who made the referral and reward the correct person.
If you only have a couple, sharing a referral code is pretty straight-forward. However, if you decided to use the refer a friend scheme as a side hustle? This could result in you having multiple referral codes making it difficult to manage them.
So, is there a way to track all of your referral codes? The answer is yes. There’s a free platform called ReferPage which allows you to share lots of referral codes.
It works like this: you create a referral page and add all your referral codes. You can then generate a unique link which means that you only have one thing to share. Once you’ve done that, it’s easy to add the link to your referral page and to your social bios, website, or directly with your contacts.
Get a referral code from a brand you value, add it to your ReferPage, and then share your unique ReferPage link.
With refer-a-friend marketing, you earn rewards for recommending a brand’s products or services. The idea is to spread the word about something you love and encourage people you know to sign up. Although it perhaps falls under the same umbrella as pyramid schemes, it doesn’t have the same negative connotations.
Make sure you’re happy with the type of reward offered before you share your refer-a-friend code. Be aware that cash won’t always be an option.
Referral marketing works because it relies on trust. If you’re genuinely impressed with something you’ve used, it makes sense that you’d want to tell people about it. And the people you’re most likely to tell are those you know well. If they trust your judgement, they’re more likely to be influenced to try it themselves.
In fact, 84% of people trust recommendations from people they know, and 77% of consumers are more likely to buy a new product when learning about it from friends or family. These stats come from research carried out by conversion rate optimisation specialist, Invesp.
If the rewards on offer from refer-a-friend marketing aren’t what you want, it might be worth considering if you can make money online doing surveys or writing reviews.
As we talked about earlier, refer-a-friend is a strategy used in referral marketing. What other types of marketing have you heard of?
Affiliate marketing is quite similar to referral marketing in that it requires someone to tell someone else about a brand and encourage them to sign up. Let’s look at both of these in a bit more detail:
Referral marketing rewards current customers for inviting their friends and family to try a product or service. With affiliate marketing, third-party brand advocates send new customers to a business in return for a flat fee. For more information, check out our affiliate marketing UK side hustle guide.
Both types of marketing are quite similar in that they both reward people for promoting a business’ offering to others. Because of the level of trust involved, they are both more likely to attract loyal, longer-term customers. This is especially true of referral marketing.
One of the main differences between the two strategies is that you probably won’t need to submit a website for review with refer-a-friend.
With affiliate marketing, businesses usually want to check the quality of your content and popularity levels, etc. It’s a form of quality control because you are representing their brand in a way.
If affiliate marketing sounds like something you could get your teeth into, check out how to sell on Fiverr! OddsMonkey even has its own affiliate programme if you fancy it.
With referral marketing, the relationship between affiliate and customer is usually close. It relies on recommendations from friends to other friends. Tell people you have an existing relationship with a brand you know and love. Therefore, the level of trust is high. It’s a good way to build a strong customer base.
Create an audience from your existing contacts. And because recommendations come from friends, the level of customer loyalty is high too.
However, with affiliate marketing, you don’t necessarily have to know your audience beforehand. Instead, they might follow you on social media or read your blog. An affiliate marketer could be an influencer, a celebrity, a blogger, or someone who owns an online business. The relationship is there – as is the level of trust – but it’s not pre-existing. That means that there’s a higher possibility of customers leaving after one interaction.
If you have a knack for building trust online, you could write reviews for money as a side hustle if that is something you would be interested in.
Both referral and affiliate marketing are reward-based strategies. That means that the referrer or affiliate will receive something in exchange for promoting a brand and encouraging sales. The type of reward offered will vary depending on the brand you’re representing. In refer-a-friend marketing, you could receive cash, discounts, or free products.
Affiliates usually receive a commission on the sales they are responsible for bringing in. It’s worth checking what’s on offer first to make sure you’ll be getting something you want.
These side hustles are great whether you’re looking for something to fill your free time and receive goodies or ways to make money on maternity leave; there are so many options.
For referral programs, you’ll usually be given either a code (word or numbers) or a link. Both are relatively easy to share, although remember that links can’t be shared on platforms like Instagram captions. They can be typed but won’t be clickable.
A referral code is much easier to share via word of mouth, which is perfect when telling friends and family about a brand. Because affiliate marketing predominantly takes place online, a unique URL can easily be added to long-form copy, such as blog posts. This makes sharing quite easy. However, a link can be a bit of a mouthful if you’re trying to share verbally, depending on the length and complexity of the URL.
This is something to think about when deciding whether you want to do referral or affiliate marketing.
There’s plenty of schemes that run refer a friend rewards from food companies to online survey companies.
Let’s have a look at some of the better refer a friend schemes on offer:
Over the last few years, there’s been an increase in the number of companies offering meal kits delivered to your door. Usually, you choose from a number of recipes and the ingredients are delivered pre-measured. It cuts down on stress, waste, and time. If you enjoy it, you’ll find a refer-a-friend code to share with your friends. All offers are correct at the time of writing, but make sure you check first.
Hello Fresh
Gousto
Huel
Deliveroo
Just Eat
Uber Eats
TopCashback
Swagbucks
Quidco
Hiyacar
Enterprise Car Club
ZipCar
Octopus Energy
Scottish Power
E.ON Next
Sky
Virgin Media
Banking Refer A Friend Schemes
Curve
Skrill
PayPal
Get £10 when a friend signs up to PayPal using your referral link and spend at least £5. You can refer 10 friends meaning you have the potential to earn up to £100 using the scheme.
Giffgaff
giffgaff is a mobile phone sim company which uses a community hub to offer customer support. With their refer-a-friend program, you can earn a £5 bonus credit that can be converted to cash for each friend that joins. Your friend will also get £5 credit and free giffgaff to giffgaff calls and texts.
Virgin Mobile
Three Mobile
Matched betting site OddsMonkey offers lots of information on potential side hustle ideas you could try out, as well as a fantastic referral scheme. Referring a friend is the easiest way to earn even more on top of your matched betting profits. You’ll receive £25 for every friend that signs up for an OddsMonkey Premium account via your personalised link. As a Premium member, you’ll have access to your referral control panel to view live data on how many Premium accounts have signed up using your link.
If you’re not yet matched betting with OddsMonkey, now’s a great time to find out more. Matched betting helps you unlock profit from the free promotional bets offered by bookmakers. Because you bet on and cover all potential outcomes, the only way you can lose money is if you make a mistake. Check out our ‘What is matched betting?’ guide to find out what you need to do to get started.
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