What are the benefits of a referral program?

Ideally, referral should become a whole new user acquisition channel. The user A can be acquired via traditional channels like ads or direct marketing. But if this user A invited user B, then it shouldn't be counted as the ads channel lead. First, I'd recommend you understanding the value for both the user A to refer you to someone, and a value for user B to accept this invitation. Something like immediate value for both of them to do this interaction and help you promoting your platform. Me and @imanmoaz are thinking on something like this right now, so your topic is very relevant.

People trust referrals. This is one of the most compelling benefits of referral marketing...Whether you want to learn about personal finance or trade Stocks, Currencies, Commodities and Indices Investor Money will help you.

I love the idea of referral programs for every business. Tendentially tho, don't rely on word of mouth to just fall from the sky. Rather try to stimulate it by offering something to your existing clients. In my business for example, after a client is satisfied with us we ask them to refer us to other business owners who have the same problems. Offering a money discount both to our current client and to the people who they will refer to us. This serves the following effects: * Our clients are happy to receive a discount if they renew with us and this increases their loyalty. * They will be happy to write to their fellow company owners as they have something cool to provide them for free.

Word-of-mouth influences every step of the consumer's journey. Word-of-mouth remains the most relevant touch point in sales. Word-of-mouth improves customer retention. Referred customers are more valuable. A referral program is a cost-effective strategy.