Referral program economics

Project referral program ROI — referral rate, double-sided rewards, referred customer LTV, and program payback.

Active customer base

Referral rate (annual %)

% of customers who refer at least 1 person/year.Referrals per referrer

Referred → paying %

Referred convert 3-5x site avg.Reward per side (×2)

Total cost = 2 × this for double-sided.Referred customer LTV

Annual net program ROI

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