{"id":"83bef50b-2b6e-4ae5-8dfc-20f169e941d2","shortId":"v4wW8T","kind":"skill","title":"referral-program","tagline":"Designs viral referral programs with incentive structures, sharing mechanics, and tracking. Covers one-sided, two-sided, tiered, and milestone models with viral coefficient calculations. Use when someone wants word-of-mouth growth, viral loops, invite programs, or says 'referral'","description":"# Referral Program Design\n\n## Purpose\n\nDesign a referral program that turns existing users into an acquisition channel. Define the incentive model, sharing mechanics, copy, and launch plan. Focus on programs that actually get used — not \"refer a friend\" links that collect dust.\n\n## Reads\n\n- `brand/audience.md` — Personas, what they value, their networks\n- `brand/positioning.md` — Value props, pricing context for incentive sizing\n- `brand/voice-profile.md` — Brand voice for all referral copy\n\n## Brand Integration\n\n- **audience.md** — Incentive type depends on audience. B2B audiences prefer account credits. B2C audiences prefer discounts or free months. Developer audiences prefer swag or extended trials.\n- **positioning.md** — Referral messaging reinforces the brand's positioning angle, not generic 'share with a friend' copy. If positioning is around simplicity, the referral CTA is 'Know someone drowning in complexity?'\n- **voice-profile.md** — All referral copy (dashboard prompts, share text, emails) should match the brand voice. A casual brand writes \"Your friend's gonna love this\" while a professional brand writes \"Share a professional recommendation.\"\n\n## Workflow\n\n### Step 1: Choose Referral Model\n\nEvaluate and recommend the right model:\n\n**One-Sided (Referrer only gets reward)**\n- Best for: High-value products, enterprise, low-frequency purchases\n- Pros: Simple, lower cost per referral\n- Cons: Less motivation for referee to convert\n- Example: \"Give your friend our link, you get $50 credit\"\n\n**Two-Sided (Both get reward)**\n- Best for: SaaS, marketplaces, subscription products\n- Pros: Higher conversion (referee has incentive), feels fair\n- Cons: Higher cost per referral\n- Example: \"Give $20, get $20\"\n\n**Tiered (Rewards increase with referral count)**\n- Best for: Products with power users, community-driven products\n- Pros: Creates referral champions, gamification\n- Cons: Complex to communicate, top-heavy rewards\n- Example: \"1 referral = 1 month free. 5 = premium forever.\"\n\n**Milestone (Unlock rewards at specific counts)**\n- Best for: Products wanting viral moments\n- Pros: Creates sharing bursts, clear goals\n- Cons: Can feel like a grind\n- Example: \"3 friends = swag. 10 friends = lifetime access.\"\n\nSelection criteria:\n- Product price point and margins\n- Customer lifetime value (can you afford the incentive?)\n- Network effects (does the product get better with more users?)\n- Purchase frequency (one-time vs recurring)\n\n### Step 2: Define the Incentive\n\n#### Incentive Types\n\n| Type | Best When | Example |\n|------|-----------|---------|\n| Account credit | Recurring subscription | \"$20 off next month\" |\n| Extended trial | Freemium model | \"+7 days of Pro\" |\n| Feature unlock | Gated features exist | \"Unlock advanced analytics\" |\n| Cash/gift card | High LTV, B2B | \"$50 Amazon card\" |\n| Discount | E-commerce, one-time | \"25% off next purchase\" |\n| Donation | Mission-driven brand | \"$10 to charity of choice\" |\n| Exclusive access | Waitlist/beta | \"Skip the waitlist\" |\n| Physical swag | Community brand | \"Free branded merch\" |\n\n#### Incentive Sizing Rules\n\n- Referrer reward should be 10-25% of first-year LTV\n- Referee reward should lower the barrier to first purchase\n- Two-sided: referee reward can be smaller than referrer reward\n- Always test: the \"right\" incentive is discovered, not guessed\n- Stack with existing promotions cautiously — don't train discount hunters\n\n### Step 3: Design Sharing Mechanics\n\n#### Sharing Methods (Offer All, Optimize for Top 2)\n\n**Unique referral link** (required, baseline)\n- Personal URL: `product.com/ref/[username]` or `product.com/r/[code]`\n- One-click copy button\n- Auto-populated share text\n\n**Referral code** (supplement to link)\n- Short, memorable: 4-6 characters\n- Personalizable: user's name or custom code\n- Easy to share verbally\n\n**Email invite** (high-intent channel)\n- Import contacts option (Google, Outlook)\n- Or manual email entry\n- Pre-written message, editable by user\n\n**Social sharing** (volume channel)\n- Twitter/X: Pre-populated tweet with link\n- LinkedIn: Professional framing for B2B\n- WhatsApp/SMS: Direct message with link\n- Platform-native share sheet on mobile\n\n**In-product prompts** (highest conversion trigger)\n- Post-success moment: \"You just [achievement]! Share with a friend?\"\n- Milestone celebration: \"You've been using [Product] for 30 days!\"\n- Team detection: \"Looks like [colleague] could use this too\"\n\n#### Friction Reduction Checklist\n\n- [ ] One-click sharing (no extra steps)\n- [ ] Pre-written share text (editable)\n- [ ] Referral link visible in dashboard at all times\n- [ ] Mobile-optimized sharing flow\n- [ ] No login required for referee to see the offer\n- [ ] Referee landing page explains the incentive immediately\n\n### Step 4: Write Referral Copy\n\n#### Referrer-Facing Copy\n\n**Dashboard prompt:**\n```\nGive [incentive], Get [incentive]\n\nShare [Product] with friends and you both get rewarded.\nYou've earned [X] so far from [Y] referrals.\n\n[Copy Your Link]  [Invite by Email]\n```\n\n**Post-achievement trigger:**\n```\nNice — you just [achievement]!\n\nKnow someone who'd love this too?\nShare your link and you both get [incentive].\n\n[Share Now]  [Maybe Later]\n```\n\n**Email nudge:**\n```\nSubject: You have $[X] in referral rewards waiting\n\nYou've been using [Product] for [X] weeks and\n[specific achievement]. Know someone who'd benefit?\n\nShare your personal link and you both get [incentive]:\n[referral link]\n\n[Share via Email]  [Copy Link]\n```\n\n#### Referee-Facing Copy\n\n**Referral landing page:**\n```\n[Referrer name] invited you to [Product]\n\n[Referrer] thinks you'd love [Product] — and they're\ngiving you [incentive] to try it.\n\n[What Product Does — one sentence]\n\n[Claim Your [Incentive]]\n\n[Social proof: X users, rating, testimonial]\n```\n\n**Referee welcome email:**\n```\nSubject: [Referrer] gifted you [incentive] for [Product]\n\nWelcome! [Referrer name] shared [Product] with you\nand you've got [incentive] waiting.\n\nHere's how to get started:\n1. [Quick start step]\n2. [Quick start step]\n3. [Quick start step]\n\n[Get Started with [Incentive]]\n```\n\n### Step 5: Plan Launch Strategy\n\n#### Pre-Launch (1 week before)\n\n- Seed with top 10% most active users first\n- Personal email from founder: \"You're getting early access to our referral program\"\n- Goal: Get first 50 referrals to validate mechanics\n\n#### Launch (Week 1)\n\n- In-app announcement banner for all users\n- Email blast to full user base\n- Social media announcement\n- Add referral link to user dashboard permanently\n\n#### Sustained Growth (Ongoing)\n\n- Trigger-based prompts (post-achievement, milestone, NPS 9-10)\n- Monthly referral leaderboard (optional, for tiered/milestone)\n- Seasonal boost: \"Double rewards this month\"\n- New user onboarding: mention referral program during setup\n\n## Viral Coefficient Calculation\n\n```\nViral Coefficient (K) = i x c\n\ni = invitations sent per user\nc = conversion rate of invitations\n\nK > 1 = viral growth (each user brings >1 new user)\nK = 0.5 = healthy referral supplement\nK < 0.2 = program needs work\n\nExample:\n- Average user sends 5 invites\n- 15% of invites convert\n- K = 5 x 0.15 = 0.75 (strong, not viral)\n\nTo improve K:\n- Increase i: More sharing triggers, easier sharing mechanics\n- Increase c: Better referee landing page, stronger incentive\n```\n\n## Referral Program Metrics\n\n| Metric | Formula | Healthy Range |\n|--------|---------|---------------|\n| Participation rate | Users who shared / Total users | 10-25% |\n| Shares per user | Total shares / Participating users | 3-8 |\n| Invite conversion rate | Signups / Total shares | 10-25% |\n| Referral revenue % | Referred revenue / Total revenue | 15-35% |\n| Time to first referral | Avg days from signup to first share | <30 days |\n| Viral coefficient | Invites x Conversion rate | >0.3 |\n| Referral CAC | Program cost / Referred customers | <Paid CAC |\n\n## Anti-Patterns\n\n- Referral link buried in settings — if users can't find it, they won't share. It needs to be visible in the main dashboard, not hidden three clicks deep.\n- Requiring both parties to be paid users before reward triggers — this kills conversion because the referee has no incentive to sign up, and the referrer waits forever for credit.\n- Complex reward rules nobody understands — if the incentive takes more than one sentence to explain, participation drops. Simplicity drives sharing.\n- Rewards that expire too quickly (<30 days) — referrers who discover the program after a few weeks feel cheated. Give at least 90 days.\n- No tracking dashboard for referrers — without visibility into \"how many people clicked, how many signed up,\" referrers lose motivation to keep sharing.\n- Generic share text that sounds corporate — \"Check out this tool\" gets ignored. Pre-written text should sound like something a real person would say.\n- Making the referee create an account before seeing the product — the referee should see the value (and their incentive) before being asked to commit.\n\n## Edge Cases\n\n- **B2B enterprise:** End-users often aren't the buyers. Referral must target decision-makers. Consider \"recommend to your network\" framing instead of \"invite a friend.\" Reward the referrer's company, not just the individual.\n- **Marketplaces (two-sided):** Design separate referral programs for each side (e.g., rider referral vs. driver referral). Each side needs different incentives and copy.\n- **Pre-launch / no existing users:** Use waitlist-style referrals (Morning Brew model). \"Refer friends to move up the waitlist\" or \"Unlock early access by inviting 3 friends.\"\n- **Low-price products:** Cash incentives may exceed product value. Use product-based rewards (extra storage, extended trial, feature unlock) instead of money.\n\n## Launch Measurement Milestones\n\n- **Week 2:** Check participation rate (target: >5% of active users sharing) and shares per user (target: >2). If below, the prompt timing or incentive needs adjustment.\n- **Month 1:** Evaluate invite conversion rate (target: >10%) and K-factor (target: >0.3). If conversion is low, the referee landing page or incentive needs work.\n- **Month 3:** Full program review — referral CAC vs. paid CAC, referred customer LTV vs. average LTV, fraud rate. Decide whether to scale, adjust incentives, or restructure the model.\n\n## Output\n\nEach referral program design produces:\n- Recommended model with justification\n- Incentive structure (type, size, trigger conditions)\n- Sharing mechanics spec (channels, copy, UX flow)\n- Referrer and referee copy for all touchpoints\n- Launch plan (pre-launch, launch, sustained)\n- Metrics dashboard spec\n- Viral coefficient projection\n\n## Quality Checks\n\n- [ ] Incentive is ROI-positive (reward < LTV margin)\n- [ ] Sharing flow is 2 clicks or fewer\n- [ ] Copy provided for both referrer and referee touchpoints\n- [ ] Anti-fraud measures defined (at minimum: email verification, delayed payout)\n- [ ] Referee landing page has clear incentive + product value + CTA\n- [ ] Referral link is visible in user dashboard, not buried in settings\n- [ ] Copy matches brand voice (if voice-profile.md exists)\n- [ ] Launch plan includes measurement milestones with specific 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'without':1255 'won':1161 'word':35 'word-of-mouth':34 'work':1039,1490 'workflow':200 'would':1295 'write':184,195,707 'written':590,672,1286 'x':732,776,787,851,1008,1052,1134 'y':736 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