When a business starts a referral program, it gives current clients a special code or link that they can distribute to their contacts. The current customer recebet aapives a reward when someone uses that link or code to sign up for the service or make a purchase. A variety of currencies, including cash, coupons, free merchandise, and loyalty points, are possible for this reward. Usually, a referral platform or app that tracks referrals and rewards in real-time automates the process.