How to Create a High-Converting SaaS Referral Program

In 2024, 25 percent of consumers were more likely to trust peer recommendations than in previous years. There’s a good reason why: 86 percent of consumers consider recommendations critical to their decision-making process, particularly for software purchases.

The best software tools have always spread through word of mouth. A colleague raves about how a tool transformed their workflow, or a friend shares a referral link with a discount. One recommendation leads to another satisfied user, creating a powerful chain reaction of organic growth. That’s the essence of referral marketing—it transforms happy users into advocates, while bringing in high-value customers at significantly lower acquisition costs.

A well-structured referral program for SaaS brands isn’t just about growth—it’s about building a sustainable ecosystem. When implemented correctly, these programs fuel organic expansion, boost retention rates, and strengthen brand trust through authentic user advocacy.

What is a SaaS referral program?

A SaaS referral program is a structured initiative that encourages customers to recommend your software to others in exchange for rewards. These programs build on the trust between your customers and their networks, making referrals an effective channel for user acquisition. 

Offering incentives boosts customer engagement while driving conversions. SaaS referral programs are particularly powerful, as they turn satisfied customers into brand advocates, creating a cost-efficient and scalable marketing strategy.

The benefits of a SaaS referral program: grow revenue and reach new customers

A well-designed referral program attracts new users who already trust your customers and are, in turn, more likely to trust your brand. Referral strategies can also lower acquisition costs and increase community engagement.

Here’s why SaaS companies prioritize referral marketing:

Builds customer loyalty and trust

People trust recommendations from peers over traditional marketing—86 percent of consumers consider recommendations critical to their decision-making process.  Additionally, rewarding existing customers boosts long-term retention––39 percent of customers report their loyalty increases after making a referral.

Lower customer acquisition costs (CAC)

Referral programs cost less than paid ads, while bringing in high-value users. Since you only pay for results, you don’t have to worry about pouring money into ads and content that might not convert.  Plus, you can track and measure results for a clear picture of your brand’s return on investment (ROI).

Increases brand awareness and revenue growth 

Word-of-mouth recommendations are impactful, especially when they come from trusted individuals.  These programs expand reach beyond traditional marketing efforts by encouraging customers to spread the word about your brand. According to industry experts, the average business generates high revenue from referral strategies.

Source: Turn loyal customers into revenue-generating advocates with referral marketing 

How to build a successful SaaS referral program: 6 case studies and best practices 

1. Jobber removes friction with one click access 

Home service business management platform Jobber helps small businesses streamline their operations. The site handles scheduling, invoicing, and customer communication in one place. 

How Jobber’s referral program works

Jobber’s referral program is double-sided, meaning both the referrer and the new customer benefit. This approach works—65 percent of referrers prefer to share rewards. 

Here’s how it works:

• Referrers share a unique referral link with other small businesses needing a streamlined home service management tool.
• New customers receive three free months of Jobber, plus VIP onboarding support.
• The referrer also gets three free months of Jobber for every successful referral.

The program encourages word-of-mouth recommendations, helping small business owners support each other while maximizing the value of Jobber’s services.

Program highlights

Easy in-app referrals. Jobber makes referring easy. Customers can send invites directly within the platform––no need to visit a separate website. Removing friction helps increase referral participation since users can share Jobber while engaging with the tool.

Quick sharing of links on social media. Jobber simplifies sharing with built-in social buttons. Users can quickly share their referral links via various social networks, such as email, SMS, Facebook, LinkedIn, and X (Twitter). With one tap, customers can spread the word about Jobber to fellow entrepreneurs, making it easier to attract new users organically.

Jobber makes it simple for users to share their referral links on social media platforms. 

Dashboard to track referrals. Transparency is key to an effective referral program. Jobber gives account owners a dedicated referral dashboard where they can track their referrals in real-time.

Jobber increases user trust and encourages more participation by offering a clear view of referrals. Will Fraser, Head of impact.com/advocate, explains that when customers know the status of their referrals, it helps them understand the value of their participation. 

Source: Customer referral marketing research: A consumer perspective

2. RealtyNinja crafts clear guidelines and a tiered approach

RealtyNinja is a SaaS platform that gives real estate agents in Canada the tools they need to create beautiful, user-friendly websites. The platform helps agents build a strong digital presence and attract more clients without development or coding skills. 

 RealtyNinja case study

Find out how impact.com/advocate helped RealtyNinja achieve double the conversion rate of its paid search ads.

Read more

How RealtyNinja’s referral program works

RealtyNinja launched a double-sided referral program. Here’s how it works:

• Give 10 percent off, Get 10 percent off. When an existing customer refers a friend, the friend gets 10 percent off their first subscription, and the referrer also receives 10 percent off their next billing cycle.
• Tiered rewards. The more friends you refer, the bigger the discount, starting at 10 percent and stacking up to 100 percent off. For example, 3 friends = 30 percent off and 10 friends = 100 percent off
• Self-referrals. Users can apply their own unique link when signing up to unlock future discounts.

RealtyNinja makes it easy for customers to understand their referral program with a visual graphic on its site.

Program highlights 

Clarity is key to driving engagement. RealtyNinja’s program is straightforward: “Give 10% off, Get 10% off.” It’s simple for users to understand what they’re getting and encourages more referrals.

Tiered rewards increase engagement. RealtyNinja’s stackable discounts encourage customers to refer multiple friends. As users accumulate more referrals, their subscription costs decrease—until they’re using RealtyNinja for free. The gamification of referrals keeps customers engaged and encourages them to keep sharing.

Unique offering: self-referrals. Even after reaching a 100 percent discount, users can keep referring to create a buffer for future savings.

Encourages super referrers to become affiliates. RealtyNinja nudges frequent referrers to become affiliates. By turning top referrers into affiliates, RealtyNinja strengthens its marketing pipeline while giving loyal customers a chance to monetize their influence.

3. Speechify chooses the right incentives to motivate customers

With over 20 million users, Speechify helps students, professionals, and lifelong learners read up to 4.5x faster across any device using its text-to-speech technology.

Whether it’s turning textbooks into audio or helping busy professionals manage heavy reading loads, Speechify helps users learn more efficiently.

How Speechify’s referral program works

Speechify’s referral program offers substantial benefits for both referrers and new users:

• Share $60 in Premium savings with friends.
• Earn $60 off your next billing cycle for each successful referral.
• Unlock a free year of Premium when two or more friends join.

Speechify highlights the equal benefit for the referrer and the new customer.

Program highlights 

A powerful double-sided referral program. Equal rewards for both the referrer and the new user create a strong incentive for participation. A double-sided structure enhances trust and encourages genuine word-of-mouth recommendations, driving more engaged users to the platform.

$60 savings—an extra boost for students. For students managing heavy reading loads, affordability matters. The $60 discount makes Speechify’s premium features more accessible, helping learners enhance their productivity without breaking the bank.

4. Hack The Box Academy gamifies referrals with multi-tiered rewards

Hack The Box Academy is a cybersecurity training platform that transforms learning into a hands-on adventure. With real-world challenges and practical security exercises, it equips users with the skills needed to excel in cybersecurity.

How Hack The Box Academy’s referral program works

Hack The Box Academy uses a multi-tiered rewards system based on Cubes, its platform currency. The program encourages sign-ups and ongoing learning:

• Welcome rewards: Earn 5-20 Cubes for bringing in 2-15 referrals.
• Learning rewards: Gain 5-20 Cubes when referred friends complete training modules.
• Subscription bonuses: Receive 35-300 Cubes depending on the subscription plan of the referred friend.

Hack The Box encourages referred users to complete modules with its multi-tiered program.

Program highlights

Gamified incentives for continuous learning. Hack The Box Academy incentivizes actual skill development. The referral program is community-driven, encouraging learners to engage in cybersecurity training.

Multi-objective rewards create lasting engagement. The multi-objective approach ensures ongoing participation, creating a community of users who support each other’s growth. Unlike traditional referral programs that focus solely on acquisition, Hack The Box Academy rewards multiple actions. Customers are incentivized when they invite new users, helping users succeed in learning, and upgrade to premium subscriptions. 

Progressive rewards turn referrals into a game. The tiered reward structure makes the referral process feel like a game, motivating users to keep referring and learning. As cubes accumulate, they unlock more benefits, reinforcing engagement with the platform.

5. ServiceTitan provides trade professionals with high-value incentives

ServiceTitan helps trade businesses stay organized with easy-to-use tools for scheduling, job tracking, invoicing, and finances. Built for contractors and home service professionals, it simplifies daily operations and helps businesses grow.

How ServiceTitan’s referral program works

ServiceTitan’s referral program offers a tiered incentive structure designed to motivate both first-time referrers and high-volume advocates:

• Quick win: Earn $500 when your referral attends a demo.
• Growth potential: Collect up to $10,000 in rewards as you refer more users.
• Dream prizes: Top referrers compete for a Tesla Model 3.
• Pro bonuses: Earn $300 per signup plus a chance to win a luxury vacation.

Program highlights

Generous rewards system. ServiceTitan understands that trade professionals thrive on word-of-mouth recommendations. By offering both immediate cash rewards and long-term incentives, the program motivates users at every stage—whether they’re making their first referral or aiming for a bonus. 

Competitive incentives drive engagement. The Tesla Model 3 giveaway adds a fun and competitive edge, making the program exciting and shareable. High-value prizes can spark higher participation–customers are more likely to engage in programs where rewards feel meaningful.

Meeting customer expectations with high-value rewards. Most customers’ (29 percent)’ biggest complaint with referral programs is that rewards are not high enough. ServiceTitan’s tiered reward system aligns well with these findings, ensuring that referrals remain attractive to both new and repeat participants.

ServiceTitan makes its rewards program accessible and aspirational.

6. Podium makes the referral program as clear as possible 

Podium helps businesses improve customer communication through smart messaging tools. Whether it’s managing online reviews, texting with customers, or streamlining payments, Podium helps businesses connect with their audiences. 

How Podium’s referral program works

Podium’s referral program is designed to be simple and rewarding for both referrers and new users:

• Both the referrer and the new customer receive $500 after the referral remains a customer for two months.
• A super-simple sign-up process encourages quick and easy participation.

Podium requests referring customers to complete a quick form. 

Program highlights

Simplicity meets generosity. Podium’s program is as straightforward as it is rewarding. By offering equal incentives to both parties, the program encourages referrals while maintaining trust and transparency.

Quick and easy sign-up process. A referral program is only as good as its accessibility. Podium makes it easy to participate by making the sign-up process as simple as possible—a key factor in driving engagement.

Smart promotion drives visibility. Podium actively promotes its referral program by featuring it in its website footer, ensuring users can easily find and participate. Proactively showcasing a referral program increases its effectiveness and encourages organic growth.

State of referral marketing report 2024

Learn how brands successfully leverage referral marketing to reach business goals.

Read the report

SaaS referral program elements for success 

SaaS referral programs are a powerful way to drive customer acquisition, increase engagement, and build strong communities. The best referral programs share key characteristics that make them effective:

• Attractive and fair rewards for both the referrer and the new customer (if using a double-sided program)
• A user-friendly experience that makes it easy to participate.
• Clear tracking and transparency to build trust and encourage participation.
• Multiple engagement touchpoints, such as social sharing, in-app referrals, and email campaigns.
• Tiered and multi-objective rewards to encourage ongoing referrals and deeper platform engagement.

Looking for referral software to help you bring in new customers and strengthen relationships with existing ones? Sign up for a free demo of impact.com/advocate today. 

Want to learn more about how customer referral and loyalty strategies can grow your business?  Check out these resources:

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