Dropbox referral program
Dropbox is a file hosting service where users can store and share data but also collaborate with others. Through introducing a referral program, the company increased their signups rate by 60% by simply adding a referral program to their onboarding tour. Consequently, Dropbox increased its conversion rates by 3900% in only 15 months!
A successful referral for a customer with a Dropbox basic account assumes 500 MB of additional storage space for each referred friend (up to 16 extra GB through referrals). Dropbox Plus, Family or Professional accounts allow for earning 1GB for each successful referral (up to 32 extra GB through referrals).
In order to carry on a successful referral, Dropbox customers need to invite their friends from the company’s referrals page. Both the referrer and the referee will be rewarded if the friend accepts the invitation sent via the referral page, installs Dropbox desktop up, signs up there and confirms their email address. The instructions are clear and simple; therefore customers are encouraged to participate.
Similarly to Dropbox, Airbnb achieved tremendous growth with their referral marketing efforts. Airbnb is a company operating an online marketplace for short-term homestays. Although their referral program got discontinued in 2021, the story of their success is worth sharing – Airbnb has been able to attract 1 million new customers in 190 countries due to referral marketing efforts.
The Airbnb approach was straightforward. Existing participants were sent email invitations encouraging to participate in a referral program. The offer assumed referrers receiving a $25 travel credit when their friends – new customers – booked their accommodation via Airbnb for the first time (maximum $5,000 of travel credit in Qualifying Home Reservations). A $75 travel credit was granted to referrers when referees would host a guest for the first time (maximum $2,000 in Qualifying Experience Reservations). Learn more about the Airbnb referral program.
Paypal word of mouth marketing
PayPal is an online payment system that makes all paying online as well as money transfers safe and secure. The company’s original referral program was so successful that it helped PayPal grow from 1 million to over 100 million users in just 5 years!
Currently, in order to carry out a successful referral, according to PayPal, 4 steps need to be taken: a referent receives a unique referral link, then this link needs to be shared with a potential referee. The referee must then sign up to PayPal via the link and receive international payments of at least $100 within 45 days of creating an account. If those conditions are met, both the advocate and the friend receive a PayPal voucher for $10. For each referred friend, a PayPal’s customer can receive up to $100 annually.
Tesla referral program
Another story of a successful referral marketing campaign comes from Tesla – a multinational automotive, artificial intelligence, and clean energy company. Their referral program allowed for 40x ROI growth while their advertising budget amounted to $0. How did they do it? Well, Tesla took advantage of the fact that Tesla car owners were already recommending the environmentally-friendly cars to their friends and colleagues.
Accordingly, their referral marketing program assumed $1,000 credit being granted to their already existing customer who referred a new buyer. This was a double-sided deal as the referee would also get $1,000 off the price of a brand new luxurious car (first purchase).
Later on a new rule was introduced: in each region – USA, Europe, and Asia – the referrer with the most amount of referrals made received an extremely high-end price: a new Tesla P90 model S, a home car charger, and an exclusive invitation to the grand opening of Tesla’s Gigafactory in Nevada.
Uber is a company providing mobility – car rides – as services. Even though their referral marketing program got discontinued in 2020 due to financial difficulties associated with covid, it is already back again and in full mode in 2023 – see how to create an Uber referral program in 2023.
The basic model of referrals made within the Uber app is as follows:
- Each user can find and invite code within their app.
- Then, when friends – referees – sign up, the existing customer can track their progress in their app.
- The reward is earned, if the referee completes a certain number of trips and meets all other conditions (both vary by city).
- When the friend completes the given number of trips and all other requirements are satisfied, the referent will see a reward (for example, a free Uber ride) added to their account. It will also be visible in their statement in the following week.