11 Best Refer a Friend Promotion Ideas to Grow Customers

Looking for the best way to get more customers without spending a fortune on ads?

Running a refer a friend promotion is one of the easiest ways to do it. These campaigns reward your existing customers for inviting their friends, helping you grow your customer base faster.

In this guide, I’ll share 11 proven refer a friend promotion ideas you can use today to turn your happiest customers into your best marketers.

TL;DR: Refer-a-friend promotions reward your existing customers for inviting their friends, helping you grow your customer base quickly and at a low cost. In this article, you’ll find 11 proven ideas, like contests, freebies, and discounts, that you can use to launch your own successful campaign.

What Is a Refer a Friend Promotion?

A refer a friend promotion is a simple campaign where you reward your existing customers for bringing in new customers. They invite their friends or family to try your business, and in return, they receive a reward.

This is different from broader referral marketing programs, which can also include affiliates, influencers, or employees. Refer-a-friend promotions focus only on direct customer-to-friend referrals.

These promotions work so well because the referrer benefits from the reward, and the friend already trusts their recommendation. In fact, customers referred by a friend are 4x more likely to make a purchase.

Bottom line: Refer-a-friend promotions are a cost-effective way to:

• Increase brand awareness
• Drive customer acquisition
• Boost customer loyalty
• Grow revenue with minimal ad spend

Next, let’s look at the best refer a friend promotion ideas you can use right now.

Best Refer a Friend Promotion Ideas

Below you’ll find several refer-a-friend promotion ideas you can offer customers. And remember, one size doesn’t fit all, so experiment to see which is the best fit for your business.

1. Run a Friend Referral Contest

Contests are one of the most powerful refer a friend promotion ideas. They motivate customers to invite as many friends as possible because each referral earns them more entries and a better chance to win.

For example, clothing brand Huckberry ran a referral contest where the top referrer won $1,000 in store credit.

You can run your own contest easily with RafflePress. Just use the dedicated refer-a-friend template to add sharing tasks and bonus entry options.

Customers can share your contest with friends on:

• Facebook
• Twitter
• Pinterest
• LinkedIn
• Email

You can also award bonus entries for other actions like joining your email list or leaving a comment.

Once ready, publish it in a blog post, page, or distraction-free giveaway landing page.

This type of contest spreads fast, drives referrals, and brings in new customers quickly.

Get Started with RafflePress today!

2. Try Social Gifting

Social gifting rewards the friend being referred instead of the customer making the referral. It’s a great way to encourage customers to share because they feel good about giving a gift.

Many subscription box brands use this method by giving customers a unique code their friends can redeem for a free box or trial.

The friend gets something free, and the brand has a strong chance to convert them into a paying customer. This idea works best if you’re confident new users will buy after trying your product.

3. Offer Free Cash

Cash is one of the strongest incentives for refer a friend promotions. Customers know exactly what they’ll get, which makes them more likely to share.

For example, Pavlus Travel offers up to $500 for each friend who books with them.

This idea works best for brands with high-value products or services. To control costs, set a clear referral goal or time limit so you can pause the campaign when needed.

4. Reward with a Charity Donation

Appeal to your customers’ values by donating to a charity for every successful referral. People love sharing when it supports a cause they care about.

Choose a charity that aligns with your brand. For example, Neal’s Yard Remedies donates money from its Bee Lovely collection to help save Britain’s bees.

Need inspiration? Check out these charity giveaway ideas for more examples.

5. Offer Free Products or Services

Freebies are a proven way to drive referrals. Customers love getting something at no cost, and they’ll happily share with friends to earn it.

Pick rewards your audience values but that are affordable for you to give away. For example, ExpressVPN gives both the referrer and their friend 30 free days for every successful referral.

6. Reward with Upgraded Products

Instead of giving something new, reward customers by upgrading what they already have. This makes the incentive feel more exclusive and valuable.

For example, you could bump them up to a better subscription plan or add a premium feature after a set number of referrals. Dropbox’s referral program gives users an extra 500MB of storage for every friend they invite (up to 16GB).

7. Try a Mystery Gift

Adding an element of surprise can make referrals even more exciting. Instead of revealing the reward, offer a mystery gift for every successful referral.

For example, Gym Box gave customers a free 1-month membership and rewarded their referred friends with a mystery prize.

The best part, is your mystery gift can be anything you already have in stock, as long as it’s something customers will appreciate. Learn more about this type of promotion here.

8. Offer Free Store Credit

Store credit is one of the most cost-effective refer a friend promotion ideas. Customers can spend their credit on what they want, and you only cover your actual cost—not the full retail value.

• Protects your margins: A $25 credit often costs you much less than $25.
• Encourages more purchases: Customers tend to spend beyond the credit amount.
• Builds loyalty: People are more likely to return when they have credit to use.

9. Reward with Discounts on Future Purchases

Offering discounts on future purchases motivates customers to refer friends and return to your store. The more friends they invite, the more they can save.

Track referrals easily by combining this discount with a RafflePress giveaway. You can ask customers to:

• Sign up for your email list
• Refer a friend

After they sign up, redirect them to a thank you page where they can claim their discount.

Building a thank you page is easy with SeedProd. Just choose a template from the library, customize it in the drag-and-drop editor, and go live.

10. Gamify Your Referral Program

Turn your refer a friend promotion into a game by adding tiers. The more friends a customer refers, the higher they climb—and the bigger the rewards.

This approach motivates customers to keep sharing and builds excitement. Just note that it works best for short-term goals since you’ll need fresh rewards to keep interest high.

Need inspiration? Check out these WordPress gamification plugins for ideas.

11. Provide Exclusive Memberships

Offer customers something others can’t get: exclusive access. This could be a VIP membership, early product access, or members-only content.

Grant access once a customer has successfully referred friends. This exclusivity makes referrals feel more valuable.

Need help setting this up? Here’s a guide to creating a WordPress membership site.

Bonus: Run Members-Only Giveaways

Keep customers engaged by running exclusive giveaways for your referral program members. This motivates them to keep referring friends to stay eligible.

With RafflePress, you can easily host a giveaway in your members-only area.

See how WPForms grew its Facebook Group to 11K+ members using this exact strategy.

FAQs About Refer a Friend Promotion Ideas

These refer a friend promotion ideas are some of the easiest ways to turn your customers into brand advocates. Whether you use contests, freebies, discounts, or exclusive perks, the key is to make it simple and rewarding for them to invite their friends.

Ready to launch your own campaign? With RafflePress, you can set up a viral refer-a-friend giveaway or promotion in just a few minutes—no coding needed.

Looking for more ways to grow your business? Check out these guides:

• How to Pre-Launch a Product (Step-by-Step)
• Creative Live Stream Giveaway Ideas
• How to Create a High-Converting Giveaway Funnel
• Father’s Day Giveaway Ideas to Boost Engagement
• Best KingSumo Alternatives for Viral Giveaways

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