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Referral Marketing is a method of promoting products or services to new customers through referrals, usually word of mouth.

Such referrals often happen spontaneously but businesses can influence this through appropriate strategies, but in eCommerce it means incentivising third party online channels to refer visitors to your website.

Referral Marketing normally involves some payment or incentive to the referring channel.

There are ways that referral marketing can be promoted virally – like getting customers to refer friends – for example through such offers as ‘refer 5 friends and get 50% off your next order’.

Photo by Freepik / CC BY

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I'm Katrina McKinnon, founder of McKinnon Group and Small Revolution. I'm using my 20 years' experience in building and operating online businesses to create engaging educational materials that helps others become successful online workers. Find me on LinkedIn and Twitter.

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