Referral Marketing Strategies That Work

Referral marketing strategy is powerful tool when used correctly and with the right partners. It has the ability to connect companies with people that can be a great resource for them and generate word-of-mouth marketing for them. Referral marketing is broken into two main types. 1. Direct Referral In direct referral marketing, companies send an individual or company a referral offer. The individual or company that is referred will be rewarded with a commission for any business that they bring in through their referral. One of the most well-known referral marketing programs is AirBnB’s system where hosts receive a fee for each reservation that is made through a guest’s referral. 2. Indirect Referral In indirect referral marketing, a company notifies its members or affiliates about a new opportunity and asks them to share the news with their contacts. Once the contact is informed about the opportunity, they are then considered a referral. One of the most well-known indirect referral marketing programs is Netflix’s mailer that includes suggestions for new shows to watch. There are a number of referral marketing strategies that can be used to drive business through referrals. 1. Contribute to