Referrals work by tapping into the power of people who endorse and recommend products or services to their friends. Here at Payhip, we have a feature that empowers you to tap into this potential and supercharge your marketing strategies.
The Referrals feature only works for digital and physical products. Products with tiered pricing (courses, memberships, coaching, bundles) are not eligible at the moment.
How does the referral system work?
On your product page, the message “Refer a friend and get 25% off! They’ll get 25% off too.” is displayed along with a link. When the buyer (Ted) clicks on the “Refer a friend” link, they’re taken to a page which generates a unique referral link for them. They can share their referral link with their friends on Facebook/Email/WhatsApp/SMS etc.
Once the buyer's friend (Jane) lands on the buy page shared with them, they see the message “Congratulations! Your friend has given you a 25% discount. Use the coupon code 7EWDU0M46 but hurry, it expires in 24 hours.”. They can redeem this code to get their discount and complete their purchase.
Note: The code 7EWDU0M46 is just an example, a unique coupon code is generated for every friend of the original buyer. This code can only be redeemed once.
Now that Jane has completed her purchase, we need to reward Ted for helping to bring that sale. Ted is automatically emailed with their very own coupon code which they can use to get their promised discount.
The amazing thing is that Ted is incentivised to refer even more friends since the size of his discount grows the more friends he refers. So in this example, we’re talking about a 25% discount and so if Ted refers 2 friends who purchase he gets a 50% off coupon code. If he refers 3 friends who purchase, then Ted gets a 75% off coupon code. And yes, you’ve guessed it – if Ted refers 4 friends who purchase then he gets the product completely for free with a 100% off coupon code. Happy days!
Ted will have one week to use the coupon code. Every time somebody new purchases, the one week expiry period will be refreshed.
Why should I setup a referral?
Marketing is tough work, it’s hard to get the word out there about your product. However, you have customers who love your products – so why not incentivise them to help you get the word out? It’s a win-win! Your customers get a discount and your sales numbers will put a big smile on your face as they move up and away.
How do I set it up?
Visit your “Marketing” page, click on the “Referral” tab and then click on the “Add Referral” button to add your first referral.
Firstly, select the product which you’d like to have the referral system for. Next add the percentage discount you’d like your buyer and their friend to receive once the friend completes their purchase.
That’s it! Easy as … the idiom escapes us, well it’s just very easy!