How It Works
Three simple steps to get accurate calculations
1
Set Reward Amount
Enter your referral reward (cash, credit, gift).
2
Estimate Participation
Define what percent of customers will refer.
3
Add Conversion Rates
Set how many referrals become customers.
4
Review Profit Impact
See ROI, max safe reward, and monthly profit.
Loading Referral Program ROI Calculator...
Frequently Asked Questions
What's a good referral reward amount?
Rule: 10-20% of first job profit. At $350 profit, offer $35-70. Cash works best, but service credits can be higher (people spend more). Two-sided rewards (both get $25) increase participation.
What percentage of customers will refer?
Without a program: 5-10% refer organically. With a program: 15-25% is achievable. Top programs hit 30%+. Key: Ask at peak satisfaction (job completion), make it easy, remind periodically.
How do referral customers compare to other leads?
Referral customers: 4x higher conversion rate (60-70% vs 15-25%), 25% higher lifetime value, lower acquisition cost, faster close time. They come pre-sold and pre-qualified by the referrer.
Should I offer cash or credit for referrals?
Cash: Universal appeal, easy to track, immediately valuable. Credit: Can offer higher amount (they spend more), keeps them as customer. Test both. Many find 50/50 split or choice works best.
How do I increase referral program participation?
Keys: Ask (most businesses never do), simplify (make it 1-click), remind (email at 30/60/90 days), recognize (thank referrers publicly), track (show reward status). The ask is 80% of it.
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Results are estimates for informational purposes only. Consult professionals for important decisions.