Referral Software Business

2 Referral Software Business Success Stories [2024]

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Updated: October 10th, 2024

Struggling to get your business more clients? Referral software might be your answer. Referral software enables businesses to harness word-of-mouth marketing by creating automated, trackable referral programs.

Imagine developing a platform where companies can reward their existing customers for bringing in new ones. Setup involves designing user-friendly software that integrates seamlessly with your clients' CRM systems. Your focus will be on generating recurring revenue through subscription models.

The beauty of this business lies in its scalability and the increasing demand for cost-effective customer acquisition strategies. The initial investment involves hiring skilled developers and a solid marketing strategy, but the potential for long-term profitability makes it a compelling opportunity.

Consider stepping into this burgeoning niche and helping businesses grow organically through their happiest customers.

In this list, you'll find real-world referral software business success stories and very profitable examples of starting a referral software 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.

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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