Channels: Referral

Guides referral program strategy for AI/SaaS products. Leverage existing users to drive growth; 3%-5% conversion vs 1%-2% for ads; CAC 50%-70% lower; referred users LTV 30%-50% higher, retention 20%-30% higher. Referral is necessity in overseas markets, not alternative.

When invoking: On first use, if helpful, open with 1-2 sentences on what this skill covers and why it matters, then provide the main output. On subsequent use or when the user asks to skip, go directly to the main output.

Initial Assessment

Check for product marketing context first: If .claude/product-marketing-context.md or .cursor/product-marketing-context.md exists, read it for product, audience, and value proposition.

Identify:

• Product type: SaaS, AI tool, subscription

• User base: Size, engagement, retention

• Goal: Signups, purchases, or both

Referral vs. Affiliate vs. Influencer

Dimension Referral Affiliate Influencer

Who Existing users Professional promoters KOLs

Incentive Discounts, credits Commission Fees, product

Barrier Low (all users) Medium High

Conversion 3%-5% Varies Varies

Referral vs affiliate: Referral needs no landing page or application; integrated in dashboard. Affiliate requires landing page and approval.

Reward Models

Model Use

Two-way Both referrer and referee get rewards; highest participation

One-way Only referrer rewarded; cost control

Tiered Rewards increase with referral count (e.g. $10 for 1-5, $15 for 6-10, $20 for 11+); incentivizes volume

Benchmark: Rewards typically 10%-30% of product price; ~11% off or ~$21 value; weak incentives = low participation. Triggers: signup, purchase, activation, or sustained use.

Mechanism Types

Type Use

Link-based Unique referral link; easy to implement; accurate tracking; share via email, social, SMS; works for web and app

Code-based Referral code (e.g. FRIEND20); memorable; offline events; mobile-friendly input

Social referral Share buttons (Facebook, X, LinkedIn); viral spread; friend trust; young users

Tracking & Attribution

Method Use

Cookie Web apps; 30-90 day window

URL params All platforms; persistent in link

Referral code Mobile, offline; manual entry

Account association Long-term tracking; subscription products

Attribution window: 30-90 days typical; 180 days for subscription. First-touch attribution to avoid double-counting.

Fraud Prevention

Risk Action

Self-referral Detect same device, payment, IP

Fake accounts Validate email, payment; monitor patterns

Bulk/automation Rate limits; anomaly detection

Per-user cap e.g. Max 10 referrals per user

Use tool anti-fraud features; audit referrals regularly.

Design Framework

• Reward structure: Type (cash, discount, credits, free service); amount (10%-30% of price); trigger; cap

• Tracking: Choose method; set attribution window; first-touch rule

• UX: One-click share; clear rules; dashboard with referral data; notify on success

• Fraud prevention: See above

• Monitor & optimize: Referral rate, conversion, CAC, LTV; A/B test rewards and flow

Best Practices

• Run multiple programs: Target different audiences, stages, goals

• Tiered rewards: Motivate top performers; progressive incentives

• Friction-free sharing: Mobile-friendly; one-click share

• Time-boxed incentives: "Refer this week for $15 off" creates urgency

• Placement: Web, email, app, in-product touchpoints; dashboard integration primary

Implementation

Approach Use

Self-build Full control; low cost; URL params or cookie + reward logic + fraud checks; open-source (e.g. RefRef) for faster start

Third-party Fast launch; Cello, Viral Loops, ReferralCandy (e-commerce), Impact (enterprise); monthly fee

Placement: Most programs integrate in product dashboard; no landing page or application needed. Optional landing page for value prop, rewards, and case studies.

Startup cost: Typically hundreds for tools + dev.

Tools

Tool Use

Cello SaaS; AI-driven automation

Viral Loops Referral + waitlist + contests

ReferralCandy Shopify, e-commerce

Impact Enterprise; unified platform

RefRef Open-source; self-hosted

KPIs

Referral rate, conversion, CAC, LTV of referred users, referred-user retention.

Output Format

• Reward model and mechanism type (link/code/social)

• Tracking approach and attribution window

• Placement (dashboard vs landing page)

• Fraud prevention measures

• Tool selection (self-build vs third-party)

• KPI framework

Related Skills

• channels-affiliate: Different audience; can run both

• channels-influencer: Brand building vs. user-driven growth

• channels-directories: Directory submission for discovery; referral for user-driven growth

• analytics-tracking: Referral link tracking, UTM