What is a referral program?

A referral program is a system used by companies to encourage existing customers or employees to recommend their products, services, or job openings to others. In return, the person making the referral may receive rewards such as discounts, bonuses, or other incentives if their referral results in a new customer or successful hire. Referral programs are popular because they leverage word-of-mouth marketing and often lead to higher quality leads or candidates. These programs can vary in structure and rewards, depending on the organization's goals and industry.