[traciees3]

Referral programs work well because they turn existing customers into a low cost acquisition channel, and referred customers tend to convert better than cold traffic.

Key decisions before setup:

• Referral trigger: does the referrer earn when the friend signs up, or only after their first purchase? Purchase based rewards protect you from fake signups.
• Reward type: discount code, store credit, wallet balance, or cash payout, whichever fits your margins best.
• Reward amount: a percentage of the referred order or a fixed amount, and whether the referred friend also gets a welcome discount (double sided referrals generally convert better than one sided ones).
• Tracking: unique referral links or codes per customer, with a dashboard so they can see their referral status and earnings.
• Fraud prevention: limits on self-referral and repeat use of the same code from the same household or IP.

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