How does a refer-and-earn program work?

A refer-and-earn program is an incentive program where customers are rewarded for referring friends, family or colleagues to a product or service. It is a marketing tactic that helps companies to grow their customer base and increase sales. Typically, customers are given a unique referral code or link which they can share with their contacts. When someone uses the code or link to make a purchase, the customer who referred them receives a reward, typically in the form of a discount or free product.