Users like your product but never tell anyone about it
Credit both the referrer and the friend. Two-sided incentives turn passive users into active promoters because sharing feels generous, not selfish.
When to use
You have a product that creates positive experiences and a clear way to give incentives (credits, features, access).
Hypothesis template
If we give [incentive] to both the referrer and friend, referral rate will increase to [target]% because sharing feels like giving a gift instead of asking a favor.
Method
The problem: Your users like your product. They just don't have a reason to tell anyone about it RIGHT NOW.
What Uber did: "Give a friend a free ride, get a free ride." Simple. Both sides benefit. Uber grew from city to city almost entirely through this mechanic.
Why both-sides incentives outperform:
- Sharing feels generous, not selfish ("I'm giving you a free ride")
- The friend has a reason to try it (free first experience)
- Removes the awkwardness of "promoting" something
- Creates a win-win-win (referrer, friend, you)
How to implement:
- Pick the incentive: Credits, free usage, premium features, discount
- Make it equal-ish: Both sides should feel they're getting a good deal
- Make sharing dead simple: One-tap share to messaging, email, social
- Pre-write the message: Include the incentive in the share text
- Track and cap: Set limits to prevent abuse but keep them generous
Incentive ideas:
- Product credits (Uber: free rides)
- Extended features (Dropbox: free storage)
- Account credit (Airbnb: travel credit)
- Premium access (Evernote: premium months)
- Physical rewards (Harry's: free products)
When to trigger:
- After a great experience (completed ride, successful project)
- At milestones ("You've completed 10 rides! Share and earn")
- In-app prominently (not buried in settings)
- Via email periodically
Key insight: The incentive should be related to your product value, not just cash. Product-value incentives create better experiences for new users.
Success metrics
- •Referral rate
- •Share rate
- •Invite → signup conversion
- •Cost per referred acquisition
- •Referred user LTV vs organic
Prerequisites
- Referral tracking system
- Incentive to give (credits, features, etc.)
- Share flow (link, message, email)
- Fraud prevention (limit per user)
Common pitfalls
- •Incentive too small to motivate
- •Complex redemption process
- •Only rewarding one side
- •No fraud controls (people game it)
- •Hiding the share option
Source: Uber. Two-sided ride credits fueled city-by-city growth.
Suggested ICE scores
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