Incentivizing Users to Increase Referrals

[anand84]

I am looking at increasing the user base of my site. And referrals is a system I think would work best for my site. Could you please suggest ways for incentivizing users for referring as many members as possible.

I am looking at no-cost/low budget incentives. Some of them that I have thought are weekly prize for the user that refers the maximum new users. Second is tieing up with local stores for discounts/vouchers, etc.

Please suggest more ideas, and how effective it had been for you.

Thanks

[caveman]

... no-cost/low budget incentives

So is everybody. Good luck with that. ;-)

Seriously, I imagine one reason you've not got much response is that there are no easy answers here.

The most obvious solution is to run an affiliate program of some sort. Another is to reward current users by things like extending memberships, $ off next purchase, etc.

Unless you have an incredibly passionate user base willing to do referrals for almost free you're going to have to give them something they regard as worthwhile. The trick IMHO is to make that something a something that deepens their loyalty, generates more repeat purchasing, etc.

There are some UGC strategies out there that produce indirect but in some cases very beneficial longer term results. ;-)