Recruit A Friend Programs Help Business Increase Customer Base Easily


Many jobs and services encourage people to informally recruit a friend. It makes sense. What better way to introduce someone to your product or service by having a current user tell them all about it for free? In recent years, companies and industries have adopted paid recruit a friend programs to grow their brand recognition and gain access to qualified leads. Here are some specific examples of companies using paid recruit a friend incentive programs that entrepreneurs can learn from.

Rideshare Companies

Ridesharing is a growing industry thanks to top players such as Uber and Lyft. These companies have recruit a friend programs that benefit both drivers and riders. Riders can “gift” a ride to a friend to try the service for free. The assumption is that riders will be so impressed with the service, they will abandon traditional taxi services for Uber or Lyft. Drivers can recruit a friend as a driver and earn a bonus of up to $300 once their friend completes a set number of drives. Talk about using thank you sayings! These recruit a friend incentives benefit everyone; the company saves some money on advertising, and the individuals gain some cash. These companies make great use of the recruit a friend tactic. This provides a valuable learning opportunity for entrepreneurs like yourself.

Online Banks

Banks compete for customers in a number of ways. Savings rates, customer service quality, ATM locations and overall convenience are the top-mentioned services that everyone looks for in a bank. Online banks do not have the advantage of physical spaces that customers may see on a daily basis. Therefore, recruit a friend programs are a good way to grow their business without investing in property or advertising. Online banks such as Capital 360 (formerly ING Direct) have an incentive program offering $25 to members that recruit a friend. PayPal grew its member base significantly by paying members to recruit a friend, although it has since dropped this program. Before opening a new account with an online bank, it may be worth asking your friends who they use and why they like the service. Your friend may get a cash bonus if they recruit a friend, and you may get a fee waived; everyone wins! This can benefit you and may also provide a small advantage for any future businesses as well.

Multiplayer Cooperative Video Games

Gamers are an extremely vocal community, so video game developers must consider word-of-mouth reviews when looking to grow their customer base. A fantastic commercial means nothing if the user experience is poor. Online multiplayer games create a shared gaming experience by allowing gamers to interact with other users all over the world. Some of the most popular MMORPGs (massive multiplayer online role playing games, for the uninitiated) design their games to be played exclusively in groups due to difficulty levels, creating a cooperative experience. For this reason, recruit a friend programs are an excellent way of growing the user base. While a monetary incentive may not always be offered, rewards in the shape of a unique game item or in-game currency may be offered to everyone that uses a recruit a friend program. Perhaps your business can similarly benefit from providing rewards to clients who recruit a friend.

World Of Warcraft

World of Warcraft, fondly referred to as WoW, is one PC gaming company that uses the recruit a friend program most effectively. Why is this so? One reason is the incentives. All gamers love exclusive content. All consumers, in general, love exclusivity. Typically, these refer a friend programs offer exclusive content and features to entice people to bring friends onboard. You may not plan to use this type of incentivizing for a co-op game. However, you can still bring similar incentives to a business operating in any other industry. If you want to make effective us of a recruit a friend incentive program, make sure you offer your customers something exciting and exclusive for participating.

Ecommerce Sites With Membership Programs

Online shopping websites that have membership programs often use recruit a friend programs because of their excellent success rate. This option is much more effective than traditional robo calling. Industry leader Amazon, for example, has found that Amazon Prime members spend an average of twice what most shoppers spend on their site in a year. Offering a recruit a friend incentive will not only please these already loyal shoppers, it encourages similar spenders to join as well. Everyone involved benefits. Whether it be with a promotional membership price for the new customer, a discount for the current customer or the website that just gained a new customer, the recruit a friend program has a great return on investment at a low cost for the business. This is an important lesson to keep in mind for your own business ventures.

Retail Stores With Manager Training Programs

Retail management trainees are often sourced by using recruit a friend programs. A current employee recommends a friend apply for a position. If hired, after a set period of time, the referring employee receives a bonus. This is advantageous to the hiring company because it saves on recruiting costs. In addition to the financial incentive, the referring employee is unlikely to recruit a friend with a poor work ethic as it will reflect poorly on the employee. Lead tracking is no longer necessary, as you have a direct connection to the lead. If your business offers a recruit a friend hiring bonus, you may see an improvement in employee productivity and business operations as a whole.

Companies use recruit a friend incentive programs because it is an inexpensive way to reach new potential customers and employees. Current users are responsible for spreading the word for a relatively small bonus, which is much cheaper than traditional advertising methods. Entrepreneurs like yourself should keep in mind that friends are usually quite honest with each other. Make sure your business is living up to advertised promises before implementing a recruit a friend program. Consider these lessons and you may benefit from using a recruit a friend program as well.

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