A referral program structures how existing customers or other participants can introduce new customers. Benefits may go to the referrer, the new customer or both. Shopify describes these programs as encouraging recommendations through rewards or discounts.[1] They go beyond an isolated positive comment about a product.
A store should define which outcome qualifies for a reward and how self-referrals, cancellations and returns are treated. Keep the benefit understandable and assess whether the acquired customer's contribution covers the cost. Do not confuse rewarding a valid referral with paying for a favourable review. Check applicable marketplace and communication-channel rules before using the program there.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.