Hey…
Is money tight this month? If you’re anything like the most of us, sometimes it is. Would you like to know a simple way to make some extra money in your spare time? Well, sure you would. You can actually make money referring your friends and family to most products or items that you already use everyday.
“So, you’re telling me that some of the items and brands that “already” use may be able to make me some money on the side?”
Yes, that is correct! Most companies will even offer a referral program in plain sight on their website or app. Making a little change is more in reach than you probably think. Now, I know what you’re thinking….
“Wow, I’m going to look at every website, app and product that I own to see if I can start cashing in immediately!”
Well, slow up-there’s no need to be so hasty. Let me walk you through a couple things that you may need to know.
So, What is a Referral Program?
In short, a referral program is a program that rewards an individual, usually a current client or employee, for bringing in new clients in exchange for a fee or some type of compensation (gift cards, points etc).
For example, if I am an Amazon Prime member, which I am, and I tell you about the benefits of signing up for Amazon Prime and if you like what you hear, I can share with you some sort of link or code to get signed up.
If you sign up through my link or code, Amazon will share a small finders fee with me for bringing them a new client. If you decide to sign up, “you” get to enjoy all of the perks that Prime has to offer at no additional cost to you and in return, “I” get a referral fee.
Most employers also create their own in house referral programs to find new talent. Some companies offer an incentive for current employees to invite their friends and family to apply for a job at their place of employment.
Chances are, if you’re a great employee, you’ll attract and recommend other people with similar traits and skills as you. This usually benefits the company by reducing amount of leg work to obtain qualified candidates and reduce turnover.
So in short, a referral program rewards individuals for………..referrals.
What Types of Companies/Products Use Referral Programs?
Nearly any type of business can create and implement a referral program. From financial apps like Acorns that offer micro-investing opportunities, to tech and electronics trade-in platforms like Decluttr, to even the Tesla car company run by Mr. Elon Musk himself.
Simply put, any type of company can offer a referral program; it’s just a matter of finding the right one that you feel comfortable sharing with the people in your sphere of influence.
For example, here are some products and services that I currently use:
Chase Cards
I own the Chase Sapphire Preferred and a Chase Freedom Card. I never buy anything on it unless I have the money to pay cash for it, but we buy our groceries and pay our bill on it it to get points.
Then we “pay it off” immediately. I don’t recommend this for everyone. But my wife and I are wise with our spending and use the points get a hotel for us and the kids when we go back to my hometown when we visit family.
With the Chase Sapphire card you can get 10,000 bonus points for each friend who gets the Chase Sapphire Preferred Credit Card.
UberEats
After work, sometimes I use UberEats to pick up a little extra cash. I don’t do it as much now because I’d rather be home more with my wife and kids. But when I did, I worked downtown and was in one of the best places to pick up the orders.
I’d work for about an hour, to an hour and a half, boost my pay by staying within the predefined UberEats boost locations and would go home happy that I picked up a little more cash.
They also have a referral program that allows the referrer (me) to get paid for referring other drivers to sign up. Once “you” sign up, you can start referring people as well.
iBotta
My family shops at Walmart a lot. Maybe a little too much. But before every trip, I use the ibotta app to see if I can pick up any deals on products at Walmart. Sometimes the discounts aren’t life changing but every-single-discount-counts!
And Walmart isn’t the only store that you can find discounts for. Most major retailers and store are listed.
And as you guessed it, they have a referral program as well. I can get $5 cash when someone signs up with my code/link and they receive a $10 welcome bonus (stipulations apply).
Why Do Companies Offer Referral Programs? How Does It All work?
Some sources say that companies that offer a referral program gain new clients that are more profitable and loyal than a normal customer.
It takes money to gain and convert customers; referral programs give people like you and me incentives to share their products and services to people (most likely our friends and family) that they may have never been able to reach.
And even though the referral fee may be an added expense to the company, it could typically be worth the cost in value in the long run.
How it works it simple:
1.) You usually sign up for a referral service through an app or website (ex. ibotta)
Once your signed in, there is usually a section within the app or website labeled referral (or invite a friend, share with a friend, refer-a-friend. They’re are all labeled differently) There is usually a special link or code that attributes to your profile.
2.) You copy the link or code and share that bad boy with all of your friends or family that may have a need for that service. *Now, don’t spam ya’ll. It’s just not nice*
3.) That’s it! Just wait until the referrals start coming in. Now, most referral programs have a certain criteria that needs to be met. For example, with UberEats, if you sign up for the service, then refer a friend, they have to complete a certain amount of “trips” (30), in a certain amount of time (within 90 days of signup) before you receive the referral fee ($100).
Now, most referral programs have a certain criteria that needs to be met. For example, with UberEats, if you sign up for the service, then refer a friend, they have to complete a certain amount of “trips” (30), in a certain amount of time (within 90 days of signup) before you receive the referral fee ($100).
Every city may have its own set of stipulations. So not only do you earn money by picking up and delivering food, you can earn money by helping people sign up and get started themselves. Some referral programs may not have as many restrictions. Every program is different, so you have to check each one individually.
What are Some Advantages of Using Referral Programs?
For the Company:
- A rewarding referral program can also be used as a tool for retaining current customers by offering an incentive of bringing new customers in.
- Referrers can generate more profits at a lower cost by doing a large amount of the leg work needed to bring in new customers
- Most likely, you will interact with similar people and attract similar people like yourself
For you:
- Money, prizes, rewards oh my!
What are Some Downsides of Using Referral Programs?
- The monetary motivation to refer new people may damage the truthfulness of their recommendation(s).
- Referral abuse. Opportunists may recommend products and services that are unsuitable for the intended audience just to collect referral fees.
Who Can Make Money Using Referral Programs and How Much?
As long as you can qualify for the service or program (registration), you can make money using referral programs. Some services require you to “jump” through some hoops to get started.
Again, using UberEats as an example, when I signed up, I had to fill out an application, agree to a background check, have a valid mode of transportation and submit vehicle insurance documentation. So, if you feel like you may fail a background check, or you don’t have a reliable mode of transportation, this gig “may” not be a good fit for you.
On the other hand, services like iBotta will let you sign up for their app through a simple sign up process and start referring friends immediately.
So, who can make money using referral programs? It depends. Every service is different. Do some detective work to find out the terms of agreement to see if “you” will qualify.
As to how much, that can be explained a couple ways. There’s the “amount” of money that you can make each time you refer someone to the company and the “number” of times that you can refer someone to a company.
Most referral programs that I normally see are smaller in scale and range anywhere from $5 to $10 dollars each time you refer someone. There’s others like job referral programs that can pay several hundreds of dollars. I actually saw one for upwards of $25,000!
Now, that’s a nice little chunk of change, but not all pay that much. Each program is different, so do a little digging and find one that you like and believe that it would be a good fit for someone that you know.
As far as the frequency in which you can refer someone, once again, it differs based on the company. With my Chase Sapphire card referral, I get 10,000 bonus points for each person who signs up for a card. I can only earn up to 50,000 bonus points each year.
So, for this illustration, I can only refer up to 5 people per year; that’s my max. Other referral programs may “not” limit how many times you can get paid. So do your research to find out if there is a cap or limit.
How and Where Can I Share a Link/Code?
It’s simple. Usually the most common places to share a referral link or referral code is through text, email and social media. These are some of the most popular places to share simply because these are usually places where most people interact with friends, family or other people that you know.
To share a link or code is simple. Just copy the code or link and paste it into a text message, email or a post on your favorite social media account and share. Boom! Easy. Most programs have an internal system that allows you to send out a link; so I would first check for that functionality.
But you can get creative. I’ve seen some YouTubers/Instagramers create channels and influencers create websites based on a specific topic and incorporate a referral program to monetize the site. This way they could create helpful content around a specific subject and in turn offer a product or service to help the reader solve a problem or obtain an intended result.
Conclusion
Overall, if you want to make money referring people to products and services that you know and trust, referral programs could be a good way for you to earn some extra money on the side. Used correctly, with the end user in mind, it could be very beneficial for your (monetarily) and for the end user as well.
So do you use referral programs? If so, I would love to know which ones. Leave a comment below of what “your” favorite referral program is.
