Is your referral programme profitable?
Estimate the revenue generated, the cost of rewards and the monthly net profit of your referral programme.
Your numbers
Adjust them to your business.
Your profitability
Monthly estimate.
Indicative estimate. With referral you only pay the reward once the customer is won, unlike advertising which is paid upfront.
How it is calculated: Revenue = customers won × customer value. Cost = customers × reward + tools. Profit = revenue − cost. ROI = profit ÷ cost.
Frequently asked questions
How do you calculate the ROI of a referral programme?
ROI = (revenue generated − total cost) ÷ total cost. Revenue = successful referrals × customer value. Cost = rewards paid + tools. The Referaly calculator does this for you.
Is referral marketing profitable?
Referral is one of the most profitable acquisition channels because the acquisition cost, the reward, is only paid once a customer is actually won, unlike advertising which is paid upfront.