This calculator determines the value of a referral based on client lifetime value and conversion rates, helping you set appropriate referral rewards.
Purpose:
Enter your average client lifetime value, normal acquisition cost, referral conversion rate, and whether referred clients are worth more or less than average. The calculator shows referral value and maximum reward amount.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access.
- Track actual referral conversion rates
- Adjust reward amounts based on results
- Compare referral value to other acquisition channels
- Test different reward structures
Understanding Basics:
Referral value equals the probability of conversion multiplied by the lifetime value of a converted client, adjusted for any difference in referred client quality.
Benefits for SMEs:
- Set data-driven referral rewards
- Justify investment in referral programs
- Compare referral ROI to other marketing
- Build sustainable referral systems
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