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Do you use referral programs to get new users?
Referrals from friends and people you trust must be the most convincing arguments to signing up for a product.
Yet, referral programs don't work for everybody. I hear that in SaaS they hardly work at all.
Does your product have a referral program? What's your experience from it?
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DoΔa Armangil
If a service has network effects, then it's often not necessary to compensate a user who brings in new users.
For example π³ππππππ‘ doesn't have network effects so it understandably has to compensate the referrer (plus the new user in their case).
On the other hand, π΅πππππππ does have network effects, so all it needs is to make it easy for users to bring in their friends, no compensation needed.
Also, to my knowledge referral programs are unheard of when the customers are organisations rather than the end-users themselves. In these B2B cases, customers testimonials and success stories are frequently used instead for customer acquisition. (Supply chain networks might be an exception to this rule, but I am unfamiliar with those.)
For my part, I don't plan on putting in place a referral program, because my Qworum.net platform has networks effects and targets organisations rather the end-users.
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Absolutely, referral programs can be a game-changer! While they might not fit every SaaS model, many companies have found great success by incentivizing users to bring in friends. For instance, Dropbox grew rapidly by offering extra storage for both the referrer and the new user.
Here is a video where my colleague from JetSoftPro, a software development service, shares our insights from working with SaaS projects in particular.
https://youtu.be/mQxsyL_BIOY
Referral programs can definitely help drive growth if executed well. We use one at my SaaS startup and have seen solid results. The key is offering compelling rewards for both the referrer and referee. Tools like Viral Loops and GrowSurf make it easier to set up referral campaigns without a ton of dev work. Worth testing out to see if it moves the needle for your business!
Referral programs can be an effective way to attract new users by leveraging existing customers to spread the word about a product or service. These programs typically offer incentives, such as discounts, rewards, or exclusive benefits, to both the referrer and the new user Ehsaas Program, creating a win-win situation.
Referral programs can definitely work wonders for user growth when done right. The key is offering incentives that are genuinely enticing for both the referrer and the new user. Dropbox's example of bonus storage is a classic. I've also seen effective programs that give discounts, premium features, or account credits. Just make sure the rewards align with your product's value prop and target audience. And don't forget to A/B test!