Referral marketing is a method of promoting products or services to new potential customers through referrals, originally word of mouth. Such referrals often happen spontaneously but businesses can influence or manipulate this through appropriate strategies.
As the internet reached mass adoption, businesses started implementing e commerce strategies which include referral marketing and all its derivatives/branches such as network marketing, loyalty marketing, multilevel marketing and pay per click.
All these derivatives are basically digital codes and links sometimes represented as coupons or banners for more visual appeal, which track and identify the seller, promoter and final client.
RM is a very effective technique to increase sales and brand recognition as it uses the power of social networks and benefits every one involved in the chain of distribution and sale.
There are many ways to implement this type of marketing campaigns, from WordPress plugins, specialized customizable apps to run your campaigns such as “Referral Rock” and large companies who offer multiple options for sellers and promoters, some of the best known are MaxBounty, ClickBanks and HotMart.
Whether you want to promote your product or service in a more effective way or to earn additional income by promoting others products or services, make sure to implement or join Referral Marketing in your next project.