Growth Hack – Incentivizing Referrals

Getting referrals for your startup is a great way to attract new users. Referrals result in a higher conversion rate, because of the connection between the referrer and the referred. Using incentives, usually monetary, to encourage referrals can produce good results.

Paypal used this in it’s early days. They gave $10 cash as a signing up bonus to new users and also gave $10 to users who referred them. This hack was used by Paypal for a very long time.