Referral programs have been a proven marketing tactic for various companies and industries.
In fact, according to recent statistics, referral marketing generates 3 to 5x higher conversion rates than other marketing channels, and customers referred by other customers have a 37% higher retention rate as compared to other customers.
At the same time, 77% of consumers are more likely to buy something when they heard about it from family or friends.
If you’re interested to learn more, in this article, we’re going to zoom in on referral programs in the crypto space, including how they work and what types of rewards crypto companies usually give to users.
What Is a Crypto Referral Program?
Just like many referral programs, a crypto referral program aims to encourage existing users or customers to invite friends or loved ones to use, attend, or avail of a specific product, event, service, or initiative by incentivizing them using rewards.
The intent is to achieve marketing goals through word of mouth, while also providing value to customers or users who participate.
What Types of Rewards Do Crypto Companies Offer?
Rewards in crypto referral programs may vary depending on the type of company or crypto project. The most common ones are free coins or tokens, although some others also offer free products, services, gift cards, discount vouchers, or coupons.
In the Kasta crypto referral program, for instance, existing users who refer friends and the referred users both receive tokens as rewards for every successful referral.
How Do Crypto Referral Programs Work?
Again, how it works may vary per company, but usually, existing users or customers are provided a referral link, ID, or code that the company can use to track their referrals.
The existing user or customer would share their referral link, ID, or code with a friend, and that friend would join, buy, or sign up for the product or event through the link, ID, or code.
For some, a successful referral is when the purchase or a sign-up has been made, but for some, there are a few more requirements.
For example, some platforms require referred users to sign up through a referral link and deposit a certain amount of crypto for it to be considered a successful referral. Then, both the referrer and the referred user would receive equal amounts of tokens each as a reward.
How to Join a Crypto Referral Program
Joining a crypto referral program is easy. For example, in the Kasta app, if you’re an existing user, you just have to:
- Log in to the app.
- Go to the referral page to see your referral link.
- Copy the link.
- Share your referral link with a friend.
- Ask your friend to sign up on the app using your link and deposit the required amount. (Don’t worry it doesn’t cost much.)
- Wait for them to complete the sign-up process.
- Once they’ve successfully signed up, both of your rewards will reflect on the referrals page.
Crypto referral programs make an exciting way for the crypto community to grow. And although mechanics and incentives may vary per company, they ultimately help strengthen relationships and establish trust between brands and customers.