Let’s talk about one of the most effective onboarding tools in digital marketing – the referral system. It’s like the secret sauce for organic growth, especially for digital products. When you get it right, it’s like starting a snowball effect towards success.
So why do I say this? Picture this: you’ve got a stellar product and a solid referral system with some cool, unique incentives. Suddenly, everyone wants to jump on board and bring their friends along, especially if it boosts their own user experience.
Now, if you’re sitting on a marketing budget the size of a small country’s GDP, or if you’ve already got a buzzing community, your referral system might just take off without those extra bells and whistles. But let’s be real, most of us aren’t in that boat.
If your marketing dollars are better spent elsewhere, then crafting a powerful referral system is key. In the world of web3, the game is about getting as many users onboard as you can. Once you’ve got the numbers, the next step is turning these users into loyal fans or community members. After that, the sky’s the limit for what you can achieve with your business model.
Traditionally, referrals were straightforward: bring someone in, get a fixed reward, maybe in loyalty or reward points that could translate into tokens. For every action your new buddy took, you’d get a cut, often around 5 to 10 percent. Or, in some cases, you’d score points when your friend leveled up.
Some projects took it to another level, creating mini MLM systems where you not only earned from your friends but also from their friends, expanding your earnings like a digital pyramid.
Telegram got even smarter by making referrals for premium users more lucrative. Referring someone with a premium account could net you 3 to 10 times the reward of a regular user, and the same multiplier when they leveled up.
I call these early tactics ‘gen. 1’ because they were among the first to really motivate users in a significant way. But as time went on, things got even more inventive.
Take X Empire, for example. They made referrals a gateway to unlocking new features. If you wanted to upgrade your skills to become a digital tycoon, inviting friends was your ticket, requiring you to refer between 3 to 15 people. If that was too much, no worries – they let users buy “Teddy bear cards” with Telegram stars, essentially buying their way to the top.
But what makes a referral system great isn’t just the rewards; it’s offering something unique.
Flappy Bird went hardcore by multiplying passive rewards based on how many friends you brought in. No shortcuts there; you had to genuinely expand your network.
To maximize your passive income, you’ve got to either convince your friends or use some other tricks to fill those spots and hit the max token or loyalty points multiplier. Now, recruiting others is one of the most crucial “desired actions” for any startup or business.
And sure, user motivation kicks into high gear when there’s an extrinsic reward on the line, but it can backfire if the demands on your friends are too steep, unless there’s another option like the one we’ve talked about. In referral systems, there’s a fine line that can make the whole thing either soar or crash.
In CoinSmash, a project I helped design, we layered on multiple incentives: a fixed reward, a permanent commission from your friend’s actions, a chance to speed up your mining, and even raffle tickets. It’s designed to appeal to different user types – from the gain-maximizers to those who love the thrill of a draw.
Now, about ethics: it’s a gray area. As long as the system doesn’t create too vast a divide between top referrers and everyone else, it’s probably within bounds – just don’t overstep into unfair territory.
Game designers have a playground here since digital rewards are plentiful. Crafting systems that resonate with your brand while engaging users is both an art and a science. For instance, if your app is all about cats, reward your users with cat-themed goodies, not random items like ruby keys or golden combs.
Remember, a well-designed referral system can do wonders for your brand, potentially saving you a ton on marketing. Using platforms like Telegram for mini-apps can be incredibly effective for onboarding users. Stand out, and people will appreciate your creativity and generosity.
I’d love to hear about any other clever referral systems you’ve come across, or what you think about the ethics of these setups. Drop me a line!
