Referral marketing is a word-of-mouth initiative designed by a company to incentivize existing customers to introduce their family, friends and contacts to become new customers. Different to pure word-of-mouth strategies which are primarily customer directed with the company unable to track, influence and measure message content; referral marketing encourages and rewards the referrer for allowing a company to do so. Different to multi-level marketing, there is no incentive for the original existing customer to drive or influence the subsequent referrals of the new customer – only the conversion of the initial, primary customer is rewarded.[1]

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