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Ostap Yaroshevych

What is a good reward for referral program to test?

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I'm just building a referral program and considering different options for rewards in case users invite a friend. What can you suggest trying except for the product rewards(free plan, free feature)?

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Kit Fach
Nothing will ever beat financial rewards, and giving free months, or free features can actually really be helpful because you can get people to try a new feature they might not have before or give the product more of a chance. Even for things, people love they don't review or refer people to. You can try offering free features that you know lead to an increase in user conversions. For example, if you know users who set up an email marketing integration have a higher chance of converting then offer free integrations if you refer a friend. But there are certain things you can cheap out on and referrals aren't one of them. Flodesk did an amazing job just factoring in the referral incentive into their price, and both the referer and the referee get to feel like they get a great deal.
Ostap Yaroshevych
@kit_fach wow, thanks for such informative feedback, we are considering a free feature reward or free months of service, but it still may be not very valuable for them as gift cards. I think we just need to test what will work better.
Vishal Godhwani from Brew Money
The way to look at referral rewards is perceived value of rewards > effort required to refer. Types of rewards 1 - Monetary - money or platform currency 2 - Access to features/support/community 3 - Fame - is sharing the product making them look cool among their friends? For example, Grammarly's monthly usage report, even though it's not a referral program but I feel good when I see I have done better than, let's say, 95% of users in vocabulary, I share it with my friend to look cool. Or Instagram, when I get 100s of likes on a post.
Ostap Yaroshevych
@vishal_godhwani Thanks Vishal for great feedback and your tips.
Philipp Schwengel
Hey @ostap_yaroshevych 1/ I would make sure to not only give a reward to the referrer, but also to the referee. People are much more likely to refer something if not only them, but also their friends benefit from this. 2/ One idea outside free plans could be premium support, access to closed community/support group on Slack where they can report feedback, bugs, or feature requests
Ostap Yaroshevych
@phil_schwengel Thanks for the feedback, totally agree with the referee's reward. We decided to make it work for both sides but still think of others options that may be more valuable than a premium version of the product. Group/community access sounds interesting. Thanks for sharing!
Ivan Ljubičić
Good discussion. I also believe in only financial awards, they are much more simple and concrete to calculate for everyone
Ostap Yaroshevych
@ivan_ljubicic Thanks for sharing, do you mean real money gift cards?
Andy Sorensen
We will be giving a $5 credit to both referrer and referee. Plus we will be giving a $10 credit to the ticket buyer (our event tickets are $25 ) and about a $7.00 credit to the marketing infuencer who gives out the credit code. This leaves us with about $8.00 from which we pay our gig work host about $5.00 per ticket leaving us with about $3.00 for all other costs. This will improve as discounts roll off over time. You can look at the details of our program under IMP (incentive market person) on our website. We launch in October starting in Texas and scale to other cities everywhere soon after (hopefully :) www.getgather.app Hit me up if you want more details. Andy
Ostap Yaroshevych
@andy_sorensen Thanks Andy, it is always interesting to read a real case with numbers!