·4 min read
MVP Referral Program Setup
Referrals are the cheapest acquisition channel. But most referral programs fail. Here is how to make yours work.
When to Launch Referrals
- •After you have happy, retained users
- •When organic referrals already happen
- •Product has clear word-of-mouth potential
- •Not during MVP validation phase
Referral Incentive Models
| Model | Example | Best For |
|---|---|---|
| Two-sided | Both get 20% off | Consumer products |
| One-sided (referrer) | Get 1 month free | High LTV products |
| One-sided (referee) | Get 50% off first month | High friction signup |
| Cash reward | Get 25 credit | Clear monetary value |
Simple Referral Setup
- •Unique referral link per user
- •Simple tracking (who referred whom)
- •Automatic reward application
- •Basic referral dashboard
Tools for Referrals
- •Rewardful: Stripe-integrated, simple
- •ReferralCandy: E-commerce focused
- •Custom: Database tracking + Stripe coupons
- •Start custom, migrate to tool if needed
Referral Program Mistakes
- •Launching before product-market fit
- •Incentives too small to motivate
- •Too complex to explain
- •Hard to find referral link
- •No reminder to share
The best referral programs feel natural. If you have to push hard, your product might not be referral-worthy yet.