There are two types of referral programs:
- Single-sided: Either the brand ambassador OR the applicant gets a bonus
- Dual-sided (recommended): Both the brand ambassador AND the applicant get a bonus
We recommend a dual-sided referral program. This is the type of referral program popularized by Uber and Airbnb — a happy customer tells all their friends about their good experience with a company, their friends become the company’s newest customers, and everyone gets a little reward to celebrate. It’s a win-win-win situation — for the company, for the brand ambassador, and for the friends.
What’s more, creating this win-win-win situation helps make referrals more successful. When only the brand ambassador is rewarded, people they approach for referrals may be suspicious. Are the brand ambassadors just out for a bonus or do they really believe in the company they’re promoting?
Dual-sided referral programs not only help make the brand ambassador more trustworthy, but they also strengthen both the established and the new candidates’ relationship with your firm. Your candidates are more likely to give referrals, too. Instead of feeling opportunistic, they’ll feel like they’re giving their friends a gift.