Referral Programs

Summary

Incentivizing existing customers to bring in new ones, typically with a reward for both sides — one of the most reliable and low-CAC growth loops when the core product genuinely delivers value.

• 1Design a referral program structure (incentive, mechanism) for a hypothetical product.
• 2Study a real referral program you've used and evaluate whether the incentive felt worth it.
• 3Learn why referral programs rarely work well until the core product has strong retention.