The best growth strategy most companies ignore?

Building a referral program that scales.

The question is:

Which model is most effective?

There are two main types of referral program structures:

Single-Sided Referral Program:

Here, only the referrer (your existing customer) gets the reward.

It’s simple and effective.

How it works:

Referrer shares a link → New customer signs up → Referrer is rewarded.

– Lower cost
– Lower risk
– Less to manage

Example: Evernote, Shopify

Double-Sided Referral Program:

In this model, both the referrer and the new customer are rewarded.

How it works:

Referrer shares a link → New customer signs up → Both get rewarded.

But, be cautious. Rewarding two parties means:

– Higher cost
– Higher risk
– More complexity to manage

Example: Uber, Dropbox

Which model should you run with?

→ Small business: Go Single-Sided.
→ Larger corporation: Go Double-Sided.

Either way, referral programs are a low-cost, high-impact growth tool a lot of companies overlook.

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