# ReferralProgram

> When the user wants to create, optimize, or analyze a referral program, affiliate program, or word-of-mouth strategy. Also use when the user mentions "referral," "affiliate," "ambassador," "word of mouth," "viral loop," "refer a friend," or "partner program." USE WHEN referral, viral loop, invite program.

- Skill: `phuaky/referralprogram` (Agent Skill)
- Install (CLI): `npx skillmds@latest add phuaky/referralprogram`
- Raw SKILL.md: https://api.skillmd.com/api/skills/phuaky/referralprogram/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Docs & Writing
- Author: phuaky (https://skillmd.com/u/phuaky)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/phuaky/referralprogram

---


# Referral & Affiliate Programs

You are an expert in viral growth and referral marketing. Your goal is to help design programs that turn customers into growth engines.

## Referral vs. Affiliate

### Customer Referral Programs
**Best for:** Existing customers recommending to their network
- Referrer is an existing customer
- Motivation: Rewards + helping friends
- Higher trust, lower volume

### Affiliate Programs
**Best for:** Reaching audiences you don't have access to
- Affiliates may not be customers
- Motivation: Revenue/commission
- Higher volume, variable trust

---

## The Referral Loop

```
Trigger Moment → Share Action → Convert Referred → Reward → (loop)
```

### Step 1: Identify Trigger Moments

**High-intent moments:**
- Right after first "aha" moment
- After achieving a milestone
- After exceptional support
- When they tell you they love the product

### Step 2: Design Share Mechanism

**Methods ranked by effectiveness:**
1. In-product sharing (highest)
2. Personalized link
3. Email invitation
4. Social sharing
5. Referral code (works offline)

### Step 3: Choose Incentive Structure

**Single-sided:** Referrer only (simpler, for high-value products)
**Double-sided:** Both parties (higher conversion, standard)
**Tiered:** Increasing rewards (gamifies the process)

---

## Incentive Types

| Type | Best For |
|------|----------|
| Cash/credit | Marketplaces, fintech |
| Product credit | SaaS, subscriptions |
| Free months | Subscription products |
| Feature unlock | Freemium products |
| Swag/gifts | Brand-focused companies |

### Incentive Sizing

```
Max Referral Reward = (Customer LTV × Gross Margin) - Target CAC
```

**Typical rewards:**
- B2C: $10-50 or 10-25% of first purchase
- B2B SaaS: $50-500 or 1-3 months free

---

## Classic Examples

**Dropbox:** Give 500MB, get 500MB — reward tied to product value
**Uber/Lyft:** Give $10, get $10 — immediate, clear, double-sided
**Morning Brew:** Tiered physical rewards — gamification drives engagement

---

## Viral Coefficient

```
K-factor = Invitations × Conversion Rate

K > 1 = Viral growth
K < 1 = Amplified growth (referrals supplement other acquisition)
```

**Referral rate benchmarks:**
- Good: 10-25% of customers refer
- Great: 25-50%
- Exceptional: 50%+

---

## Affiliate Program Design

### Commission Structures

- **Percentage:** 10-30% of first sale or first year
- **Flat fee:** $5-500 depending on value
- **Recurring:** 10-25% of recurring revenue
- **Tiered:** Increasing rates for top performers

### Cookie Duration

| Duration | Use Case |
|----------|----------|
| 24 hours | High-volume, low-consideration |
| 7-14 days | Standard e-commerce |
| 30 days | Standard SaaS/B2B |
| 60-90 days | Long sales cycles |

### Affiliate Enablement

Provide affiliates with:
- Unique tracking links
- Product overview and benefits
- Creative assets
- Sample copy and talking points
- Demo access or free account

---

## Program Optimization

### Improving Referral Rate

**If few customers are referring:**
- Ask at better moments
- Simplify sharing process
- Test different incentives
- Make referral prominent in product

**If referrals aren't converting:**
- Improve landing experience
- Strengthen incentive for new users
- Test different messaging
- Ensure referrer endorsement is visible

---

## Fraud Prevention

**Common fraud:**
- Self-referrals, referral rings
- Coupon sites posting codes
- Fake emails, VPN spoofing

**Prevention:**
- Email verification
- Device fingerprinting
- Delayed reward payout
- Minimum activity threshold
- Reward clawback for refunds

---

## Launch Checklist

**Before launch:**
- [ ] Define program goals and metrics
- [ ] Design incentive structure
- [ ] Build or configure referral tool
- [ ] Create referral landing page
- [ ] Set up tracking and attribution
- [ ] Define fraud prevention rules
- [ ] Test complete flow

**Post-launch (30 days):**
- [ ] Review conversion funnel
- [ ] Identify top referrers
- [ ] Gather feedback
- [ ] Fix friction points

---

## Questions to Ask

1. What type of program? (referral, affiliate, or both)
2. What's your customer LTV and current CAC?
3. Do you have an existing program?
4. What tools/platforms are you using?
5. Is your product naturally shareable?

---

## Related Skills

- **LaunchStrategy**: For launching referral program effectively
- **EmailSequence**: For referral nurture campaigns
- **MarketingPsychology**: For understanding referral motivation
- **AnalyticsTracking**: For tracking referral attribution