15 examples of successful referral marketing programs
By Megan Johnson and Zach Links●7 min. read●Apr 10, 2025
People are 90% more likely to buy from brands based on recommendations from their friends vs. advertisements.
That’s why referral programs deliver such a high ROI. Whether you’re selling colorful shoes or cloud storage, referred customers make more repeat purchases than their non-referred counterparts and stick with brands longer.
Referred customers have a 16% higher customer lifetime value (LTV) compared to customers acquired through other means. They’re also more loyal in the long-term, with a 37% higher customer retention rate than non-referred customers.
But not all referral programs are created equal. A handful of companies are light-years ahead of the competition when it comes to building referral programs that perform.
It’s always advisable to learn from the best. Below, take a look at 15 companies that have perfected the referral program model.
What is a customer referral program?
Referral programs encourage customers to recommend a brand they trust to friends and family.
In exchange for bringing in new business, the person who shared the referral generally receives a bonus, ranging from gift cards and free products to bonus cash or service upgrades.
In some situations, which are known as double-sided referral programs, both parties receive a benefit. The quick and easy growth method forms an essential part of maintaining brand loyalty and increasing customer LTV.
15 examples of successful referral programs
Let’s take a look at 15 companies across industries that have nailed the referral program formula, including one company that drove 3,900% growth.
1. Robinhood
How this referral program works
Robinhood’s referral program allows customers to invite a friend to join. When that friend signs up, gets approved, and links their bank or debit card, both parties receive gift stock from a list of Robinhood’s top-traded companies.
Worth a specific dollar amount, the cash value can be put toward fractional shares of the companies offered. However, the gift stock has to be used within 60 days or it expires.
Why it’s successful
Robinhood demystifies the process, presenting investing as welcoming to all, instead of just finance professionals on the stock exchange floor.
But there’s also beauty in the simplicity of the program, which consists of a shareable link passed easily between friends.
The program was a clear success from the get-go, bringing in a whopping 1 million users before launch through a referral waitlist that allowed people to boost their spot on the list if they referred more and more friends, Business Insider reported. The more friends you referred, the sooner you were accepted into the program.
2. Dropbox
How this referral program works
Dropbox customers can use a custom invite link to refer a friend to the cloud storage company. When the referred customer creates a new account, both parties get extra storage. The friend who signs up through the referral earns 500 MB of additional free storage.
Why it’s successful
Many people know Dropbox because of its wildly successful referral program. In its early years, the company greatly relied on word of mouth, and that viral nature paid off as the business scaled. Dropbox grew by 3900% thanks to its referral marketing program, according to a presentation from CEO Drew Huston.
3. PayPal
How this referral program works
When a PayPal member successfully refers a friend to join, both parties earn $10, or 1,000 points. Users can earn up to $100 (or 10,000 points) if they invite as many as 10 friends. However, the friends have to spend or send $5 within 30 days of when they signed up.
Why it’s successful
PayPal’s referral program has changed a bit over the years. While it’s been said that PayPal initially spent $60 to 70 million on referral rewards with no revenue, that spending paid off. The viral nature was modeled “just like bacteria growth in a Petri dish,” said the co-founder in an interview. PayPal's program also spawned others: Dropbox CEO Drew Huston shared that PayPal’s $5 sign-up bonus inspired his company’s referral program.
4. Bobbie
How this referral program works
Bobbie, an organic baby formula company that promotes high-quality ingredients, allows users to invite a fellow parent to subscribe using a referral link. If the referred user successfully signs up, both parties get a canister of the product for free.
Why it’s successful
If there’s any area people are willing to spend money in, it’s one that involves their children. Bobbie knew that, for the cost of two canisters of product, it could potentially lock in customers for several years. Simply put, footing the bill for the initial free product proved worth it in the end.
5. Uber
How this referral program works
Uber's referral program has gone through several iterations over the years. In the current version, users share their custom referral code with a friend interested in creating a rider account and the code gives them 50% (up to $10) off their first two rides. In exchange, the referrer gets the same deal for their next two rides.
As for referrals to the driving program, new drivers can sign up using the invite code, complete a number of trips, and the person who referred them receives a reward.
Why it’s successful
An example of a dual-sided referral program, Uber understands how competitive the rideshare industry is and wisely wants to lock in return customers and employees. As a result, the brand rewards both parties for participating.
6. Airbnb
How this referral program works
Airbnb’s Host Referral Plan allows existing hosts to refer as many as 25 first-time hosts who successfully complete bookings. The financial reward the existing host receives isn’t public, but it is specified on each host’s Referrals send page.
Why it’s successful
Airbnb is well aware that without hosts, they have no product. By providing a financial incentive for existing hosts to encourage their friends to join the program, they’re cashing in on the power of word-of-mouth to get hesitant first-time Airbnb hosts to take the plunge.
7. Quip
How this referral program works
Quip allows users to share a $5 credit with friends. Every time a friend uses the referral link, the user earns a $5 credit.
Why it’s successful
Subscription-based services like Quip rely on return customers. By providing rewards to existing customers for recruiting new ones, they’re maintaining a solid customer base. That word of mouth is exceptional (and cheap) compared to traditional advertising. According to McKinsey, word of mouth is the primary factor behind 20 to 50 percent of all purchasing decisions.
8. Rothy’s
How this referral program works
Rothy’s referral program allows you to give a friend a $20 discount off their first purchase of $50 or more. Every time that is redeemed, both parties receive $20. However, it is exclusive to the United States.
Why it’s successful
While Rothy’s referral program has changed over the years, the colorful shoe company has a cult following, which means customers are eager to collect diverse colors and styles. As a result, they become incredibly loyal to the brand, and are eager to share their referral links to save on their purchases.
9. Google Workspace
How this referral program works
Google Workspace’s Referral Program allows users to share their referral link and promotional codes with as many as 200 friends per year. In exchange for a referral, you receive a cash reward. The reward depends on which plan new customers choose. For the Business Starter plan, it’s $8 per user. For Business Standard, it’s $15 per user. For Business Plus, $23.
Why it’s successful
Financial incentives win out every time, especially when they allow for multiple new subscribers. Google Workspace is very open about their referral program’s success, and regularly publishes case studies on the topic. A company called ManagedAdmin shared that they pulled in an extra $10,000 per month from Google Workspace and associated add-ons and services.
10. Casper
How this referral program works
If you refer a friend to Casper, they receive 25% off their purchase, and you receive a $75 Amazon gift card.
Why it’s successful
The team at Casper is well-aware that studies show referred customers generate higher margins than other customers, and that’s what makes the mattress company’s program successful. Casper generated 7x higher returns than their average marketing investment. How’d they manage it? 25% off is a hefty discount for the referred party, and a $75 Amazon card that can be spent on almost anything is a flexible reward.
11. Rakuten
How this referral program works
Rakuten's Refer-a-Friend Program provides users with a referral link they can send to friends. When they join and spend $30 within 90 days, you both get a $30 bonus.
Why it’s successful
75% of consumers make decisions or overcome concerns about brands based on conversations with peers, according to Edelman. Like other referral programs, Rakuten relies on existing customers sharing their satisfaction with their friends and family. The double-sided incentive is also a boost to the company’s success rate.
12. Hindbag
How this referral program works
Hindbag's referral program allows customers to share unique referral codes with friends. Both parties benefit when the referred friend makes a purchase. As an ecommerce brand, Hindbag offers existing customers points they can redeem for discounts when their referrals convert. New customers receive a special discount on their first purchase, which lowers the barrier of entry for Hindbag’s “eco-responsible” cotton bags and accessories.
Why it’s successful
Hindbag generated over €200,000 (~$218,000 USD) in sales through its referral marketing program and acquired 3,700 new customers in just one year.
The program succeeded by seamlessly integrating with Hindbag’s values-driven brand and creating a community of ambassadors passionate about the company’s mission. This approach to customer acquisition proved especially effective for this sustainable fashion brand, which relies heavily on word-of-mouth and shared values.
13. American Giant
How this referral program works
Apparel company American Giant offers a double-sided incentive where existing customers can give friends 15% off their first purchase while earning $15 when that friend completes an order. The referral widget sits prominently in the menu bar at the top of American Giant’s homepage to maximize visibility. Customers can share their personalized referral link through email, Facebook, or Facebook Messenger.
Why it’s successful
American Giant used deep insights into customer product preferences and sharing habits to inform its channel strategy. Email referrals achieved an impressive 21% conversion rate, with customers sharing the referral link three times on average. Meanwhile, the company’s focus on social media enables customers to meet it in preferred spaces like Facebook, reinforcing brand values while efficiently acquiring aligned customers.
14. SmartBear
How this referral program works
SmartBear uses customer satisfaction surveys to identify promoters who are ready to refer new business. The company’s customer success team identifies highly satisfied customers through Net Promoter Score (NPS) surveys and connects these potential referrers with the sales team. The company directly asks for referrals within surveys or through personalized outreach to activate referred promoters.
Why it’s successful
SmartBear generated $6 million in referral business and increased close rates from 30% to 47% by systematically identifying and activating promoters. This approach targets happy customers who are likely eager to refer others and interested in additional products themselves. By mapping the customer journey and implementing transactional surveys, SmartBear created a structured advocacy program that turns customer satisfaction into measurable revenue growth.
15. Harry's
How this referral program worked
Harry's pre-launch referral campaign collected ~100,000 email addresses in just one week before its official debut. Users entered their email on a splash page with minimal information about the brand, then received a unique referral link to share with friends. For each successful referral, users could earn increasingly valuable rewards — from free shaving cream for five referrals to a year’s worth of free products for 50 referrals.
Why it was successful
The program leveraged mystery and exclusivity, making early participants feel like insiders to something new and exciting. Harry's created achievable reward tiers with tangible products that motivated sharing, with over 200 people reaching the top tier of 50+ referrals. The strategic approach to seeding the campaign through personal networks created an organic referral chain — 77% of all emails came through referrals, giving the new ecommerce company instant credibility through trusted connections.
Key takeaways
Referred customers tend to be more loyal and have a higher LTV than customers acquired through other channels. But the most effective referral marketing programs make it easy to refer friends, offer quality rewards, and keep barriers to entry low for new customers.
Successful referral marketing starts with understanding what motivates your audience. Continuously test and optimize your program to drive conversion and maximize ROI.
FAQs
Updated April 10, 2025
