What Is Referral Marketing, And How Does It Work?

We all have that kind of friends. You know, the one who's always raving about the crazy travelling ideas for the weekend, the latest coffee shop you need to pay a visit, the coolest new app you ought to try, or that new breakfast joint you need to give it a shot. And you know what? More often than not, you end up checking those out yourself, either quietly or together with them. That, my friend, is how referral marketing works. But in this case, you are at the customer's or the user's end.

Now, you need to change the side—to the business end.

First things first, what is referral marketing? Well to me, referral marketing is like capturing that friend's enthusiasm and merging it up for your own business. It's about turning your happy customers and circle of friends into a volunteer marketing army, spreading the word about your super-great products or services to their networks. Why do I say that it’ll work? Well, that’s because it taps into something much deeper than another means of marketing—trust. I think you realise by now that as a human being, we’re far more likely to believe a recommendation from someone we know and respect than some random marketing message we see out there . . .

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