Setting up your Referral System

Lets start by setting some expectations.

A good newsletter referral program allows you to help grow your list by giving rewards to your current subscribers. This depends heavily on how well you know your subscribers and how well segmented your list is. Do you know what they love? Have they engaged with your content on your newsletter and off? What do other referral programs in your niche look like?

It's recommended to start a referral program around 5k-10k subscribers. But it is possible to start around 1k-2k.

I would highly recommend looking into paid acquisition or recommendation programs if your list is below those ranges. Not only will it probably be cheaper, but you'll get faster results.

Now lets start!

First identify what service you want to manage your referral program.

If you are using Beehiiv you can use their powerful built in referral system with their Scale and Max plans. (Beehiiv recently revamped their pricing tiers)

For every other provider (Except substack, why's your newsletter on substack anyway?) Sparkloop is one of the best options. But it starts at $99 a month.

Unless that is, you're a Convertkit user with the CreatorPro plan, then you get a campaign in Sparkloop for free. (As of the writing of this post).

Convertkit purchased Sparkloop in 2023 to offer this benefit.

Weighing the actual cost of building a maintaining a referral program is usually the biggest factor in actually utilizing a RP.

A referral program can increase your growth by 20% to 200%.

If you're comfortable with the cost and time investment lets get to building your program.

Your newsletter should be a place where you focus on providing your subscribers with a experience they can't get on other platforms.

Involve them (with their permission) while building your referral programs.

The rewards should be created with direct feedback from your subscribers. Instead of building what you think they want, get some responses directly from your list. Build the reward and send it to a few subscribers as a "freebie".

Measure their feedback and use the testimonials.

If you get a great response, then test a bigger audience.

If not you've saved yourself a ton of time and effort on a program that will probably flop (because they do).

Action points:

1. Poll engaged subscribers for feedback
2. Make some test products and offer them to engaged subscribers
3. Manage time spent so you don't waste time making something people don't want.

Alright, so what are some things people may want in your referral program?

Great options include:

1. Shortened versions of existing courses
2. Coupons to your existing products
3. Merch if you have a store and products. (I mean do any of you want a coffee mug that says LETTRCRAFT? (Yo let me know I've been wanting to make it happen)
4. 1 on 1 coaching. Don't have a coaching offer? A chat over coffee can be just as great of an incentive.
5. Mega bundle of your services.
6. Sponsored products from other people/businesses in your niche
7. Digital items like stickers or templates.
8. Aggregated lists or documents of your content.
9. Access to special chat groups
10. Paid newsletter access if you have a paid newsletter.

Pick a few to get started with but don’t go overboard! These should be highly valuable to your audience and allow you to see who your “Brand Champions” are.

Lay out your tiers.

This step takes tons of thought as well.

What is your ROI for new subscribers. Is it your course or digital content? Maybe you’re looking to have the new subscribers go through an automation to lead to your High Ticket Coaching service. Your referred subscribers are 1.3x more engaged than organic leads so treat them as highly valuable customers.

Always make your first referral goal a “no-brainer” to get them hooked on referring people.

The digital product that's making a ton of sales at $20? Offer it as your first tier for referring 2-5 people. While you may not be making $20, those people who really desire that product will keep progressing through the tiers and growing your list for you.

Calculating your CPA (Cost per acquisition) is super important. Because if it’s considerably more than just purchasing the subscribers outright. As you’ll save time and money with this option.

Gauge this by crossing the life time value of a subscriber against the cost to acquire them. If your newsletter is already performing well it’s probably a great time to add a referral program.

Lets implement!

You’ve chosen your platform, tested your rewards, and laid out your tiers. It’s time to begin launching your referral program.

This is a big deal! Let your subscribers and top of funnel know! Tease it on social media, inform your list that there’s upcoming opportunities with your program to get more value! (don’t use that specific phrase please.)

Creating hype around any release is important. To get the best liftoff budget a month of consistent promotion.

The Big F word.

The final piece of your referral program: Fulfilment

The reason I suggest using Beehiiv or Sparkloop is for this very reason.

You don't have to build a complex Zapier system to fulfil. You just have to build the rewards and drop them into a prebuilt effective program designed for your success.

Sparkloop even integrates with Printful to make print on demand merch easily accessible to any brand. (Be honest, you want some business swag for yourself anyway.)

Make sure that if you're offering 1 on 1 sessions or coaching to make this as seamless of an experience as possible.

It'll bring you more business and more newsletter subscribers!

What are your thoughts on creating a referral program?

Does it seem less or more daunting now?

Referral programs are not the right choice for every niche.

But they can be an amazing benefit to you and your subscribers when used correctly!

Need tailored help setting up or writing your newsletter?

Lettrcraft specializes in creating organic, engaged newsletters to give your customers a journey.

Reach out today for a custom plan to create and grow your newsletter.