Refer A Friend App Business

2 Refer A Friend App Business Success Stories [2024]

•

Updated: October 9th, 2024

Looking for a unique business opportunity that leverages social connections? Consider starting a refer-a-friend app business. This business model revolves around creating a platform where users can earn rewards for referring their friends to various services or products.

The setup involves developing a user-friendly app, forging partnerships with companies eager to gain new customers through word-of-mouth referrals, and integrating seamless reward systems. Once the framework is established, the key is to maintain engaging features and relevant partnerships to keep users invested.

What makes this idea appealing is its potential for organic growth. People are naturally inclined to share services they love with friends and family. This app capitalizes on that inherent behavior, making it a compelling venture for those interested in blending technology with social networks.

The work may seem daunting initially, but the payoffs can be significant as you create a platform that fuels continuous engagement and mutual benefits for businesses and consumers alike.

In this list, you'll find real-world refer a friend app business success stories and very profitable examples of starting a refer a friend app business that makes money.

1. GrowSurf ($1.2M/year)

Kevin Yun, co-founder of referral software company GrowSurf, came up with the idea for the business after realizing that there was a lack of suitable referral software available on the market. After years of waiting for someone else to build the ideal solution, Kevin and his co-founder decided to create it themselves, with the vision of making it as streamlined as possible to integrate a referral program into any product. Since launch, GrowSurf has achieved an impressive $25k MRR and is focused on increasing customer retention and reaching $1 million in annual recurring revenue.

How much money it makes: $1.2M/year
How much did it cost to start: $0
How many people on the team: 2

How We Developed A $25K/Month Referral Software For Tech Startups

Co-founders of B2B SaaS startup GrowSurf, Derek and Kevin, developed a referral software for tech startups that has brought in around $25k MRR with a 6% monthly growth rate, overcoming generic messaging and a compromised product that wasn't a good fit for anyone.

Read this case study

Read by 7,941 founders

2. Referral Rock ($840K/year)

Back in 2013, the founder was at a car dealership and overheard a conversation about a referral. He noticed the salesperson’s momentary confusion before switching to sales mode, which sparked curiosity about how traditional businesses manage referrals. This observation led to research, which confirmed that existing referral programs were primarily for e-commerce, unveiling an untapped market for non-e-commerce businesses.

Seeking validation, the founder surveyed small businesses they had connections with, such as real estate agents and local contractors. The feedback was lukewarm, but conversations with consumers participating in referral programs highlighted significant pain points, compelling the founder to move forward despite the initial skepticism. They constructed a minimal viable product (MVP) using simple tools, bypassing a full database to test the waters quickly and cost-effectively.

The founder's approach was hands-on and iterative. They continuously tweaked the product based on user feedback, even conducting manual updates from user inputs gathered through form tools. A pivotal moment was realizing, through direct customer interactions, that the product could indeed charge fees, which validated the business potential and guided strategic decisions thereafter. Despite early challenges, including the struggle to charge customers and manage product scope, the founder’s persistence, driven by customer insights and a pragmatic approach to development, proved crucial in refining the idea and setting Referral Rock on a path to success.

How much money it makes: $840K/year
How many people on the team: 12