Glossary

Referral

Methods of promoting services or products to new customers see the use of referrals, which often offer a money off discount or incentive to the person who refers the new customer (the referrer). A discount offer or incentive will be extended through the referral to the prospective new customer. Some referrals are paid whereas others are not, such as free 'word of mouth' advertising. Paid referral marketing is a process that is used to increase customers and is usually performed online through either an internet based or a software as a service offer. Traditional referral marketing is also used online through electronic referral. Marketers will consider the referral marketing return on investment.