# Referrals — Marketing Skill for AI Agents

A referral program works when it runs a tight loop — trigger moment, share action, convert the referred user, reward, repeat — with the ask placed right after an "aha" moment or milestone. Use referral programs for existing customers recommending peers; use affiliate programs (ongoing commissions) for third-party creators and influencers who aren't customers. Double-sided incentives, where both parties get value, typically convert better than referrer-only rewards, and in-product sharing beats email or social. Cap your reward at (customer LTV x gross margin) - target CAC; typical rewards run $10-50 for B2C and $50-500 or 1-3 free months for B2B SaaS. Referred customers tend to have 16-25% higher LTV and 18-37% lower churn.

> Maintained by Corey Haines · v2.0.0 · Updated 2026-05-13

Install: `npx skills add coreyhaines31/marketingskills`
Source: https://github.com/coreyhaines31/marketingskills/tree/main/skills/referrals

## What's inside

**The playbook covers:** Before Starting, Referral vs. Affiliate, Referral Program Design, Program Optimization, Measuring Success, Launch Checklist, Email Sequences, Affiliate Programs, Task-Specific Questions, Tool Integrations

### Reference library

- [Affiliate Program Design](https://github.com/coreyhaines31/marketingskills/blob/main/skills/referrals/references/affiliate-programs.md) — Detailed guidance for building and managing affiliate programs.
- [Referral Program Examples](https://github.com/coreyhaines31/marketingskills/blob/main/skills/referrals/references/program-examples.md) — Real-world examples of successful referral programs.

## Example

**Prompt:** Help me design a referral program for our SaaS product. We're a $49/month project management tool with about 1,000 customers. We want to encourage word-of-mouth growth.

**Double-sided referral offer**

Give a friend 1 month free, get 1 month free when they subscribe. Share your link → they sign up → you both get the reward. (Reward clawed back on refund/chargeback; email verification required.)

**Max-reward math**

Max reward = (LTV x gross margin) - target CAC = ($1,200 x 0.70) - $200 = $640 room per referred customer.

## FAQ

### What is the difference between a referral program and an affiliate program?

In a referral program the referrer is an existing customer recommending to their own network — higher trust, lower volume, usually a one-time reward. In an affiliate program the promoter may not be a customer at all (bloggers, YouTubers, newsletter writers) and earns an ongoing commission — higher volume, more variable trust. Use referral for word-of-mouth among customers; use affiliate to reach audiences you don't already have.

### Should referral rewards be single-sided or double-sided?

Double-sided usually wins because both the referrer and the referred person get value, which creates a win-win framing and lifts conversion. Single-sided (referrer only) can still work for high-value products, but if your program is stalling, testing a double-sided structure is one of the first changes to try — alongside better placement and timing.

### Only 5% of my customers ever refer. How do I fix it?

Diagnose the four common causes: awareness (are customers even aware of the program?), timing (are you asking at peak-satisfaction moments like right after an aha moment?), incentive (is it compelling and ideally double-sided?), and friction (is sharing one click?). Add prominent in-app prompts, time the ask to milestones, simplify to a single share action, and send referral reminders in email and in-app.

## Related skills

- **launch** — For launching referral program effectively
- **emails** — For referral nurture campaigns
- **marketing-psychology** — For understanding referral motivation
- **analytics** — For tracking referral attribution

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Canonical: https://marketing-skills.com/skills/referrals