Referral marketing thrives on the principle that not all sharers are created equal. Some subscribers might struggle to make a single referral, while others can generate thousands. To maximize the effectiveness of your referral program, especially given that over 90% of referrals come from social sharing, it's essential to structure your referral milestones in a way that encourages everyone to start sharing and share some more!

You simply need to think about 3 categories:

The first reward should be compelling, automated, and free, like a PDF or coupon. It should be something every subscriber believes they can achieve if they share.

Include 2-3 rewards in this range to give "normal" subscribers an attainable goal that motivates them to share again. These rewards should be desirable but not too difficult to achieve.

These are the rewards your subscribers really want, often physical items. They should be significant enough to encourage your biggest fans to keep spreading the word.

Choosing the right rewards can make a significant difference in motivating your audience to share. Here are various types of rewards that have proven effective:

Offer free, digital content such as worksheets, videos, courses, or paywalled articles. These can be valuable resources that your audience will appreciate and find useful.

Provide access to exclusive content or products that aren't available to the general public. This could include an insider section, a secret newsletter, or a limited edition product range.

Collaborate with brand partners to offer rewards. These can be provided for free or as a paid deal to boost revenue, benefiting both your brand and the partner.

Turn fans into ambassadors with branded merchandise like mugs and t-shirts. Alternatively, use your own product upsells as rewards.

Automate coupons, free months, and gift vouchers for your products or a partner's. This not only rewards referrers but also boosts revenue.

Offer a "crazy" reward to really grab your subscribers' attention and encourage shares. Examples include a flight to New York or a MacBook.

Take growth to the next level with referral giveaways. Subscribers can win (sponsored) prizes for sharing, adding an element of excitement and competition.

Offer rewards that highlight what makes your brand unique. Your audience loves your brand’s personality, so provide more of what makes you special.

Partner with another (non-competing) brand that your audience likes and swap products as referral rewards. This is a free and effective way to gain exposure to a new audience.

Encourage sharing by offering unlockable "exclusive" content for 1-3 referrals. Adding a bit of mystery or story, like Tim Ferriss' "chapter of my book the publishers made me take out," can be particularly enticing.

Reward your most likely sharers with early access to new products before a launch. This can boost sales and create a sense of privilege among your subscribers.

Create an exclusive section of your newsletter that only “insiders” can see. To unlock it, subscribers need to make 1-3 referrals. This can create a sense of urgency and exclusivity.

Often, the most desired reward is time with you. Offer a free virtual coffee or coaching call as a reward for more referrals, similar to what NYT-bestselling author David Sinclair did.

Structuring your referral rewards effectively can significantly enhance the success of your referral marketing campaign. By offering a mix of valuable, exclusive, and aspirational rewards, you can motivate a broad range of subscribers to share your brand and drive growth. Remember, the key is to make the rewards compelling and achievable, encouraging both small-scale and large-scale sharing efforts.