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Why Referral Programs Work and How to Launch One

Updated: May 8

“Hey! Kantara movie is now streaming on Amazon Prime. Did you watch it?”

“You know H&M has this amazing winter collection. You must check it out”

“Next time let’s go to Chulha Chauki Da Dhaba for dinner. I’ve heard it’s amazing!”

I’m surrounded by people who keep suggesting all the things I could watch, food I could try, and places I could go and it feels amazing.


But that’s not even the best part. The best feeling follows when I come back and tell them how much I enjoyed their suggestion.

The satisfaction that I experience for time and money utilised well and the happiness they get upon their suggestion turning out good is truly a win-win.

That’s why I love the whole concept of referrals, especially the potential it holds when it comes to businesses.

I mean think about it, a customer who has already been pleased with your product or service will now spread the word, bringing you more customers.

“Wait, so…I’ll just run a referral program within my product and it will work?”, you may wonder and if you do, let me clear that thought out for you.

Referral Programs Psychology

People will refer and those who are referred will value it. No no, it’s not me. It’s Dr Robert Cialdini’s Influence: The Psychology of Persuasion book which makes it possible.