Joining Google Fi? Below (in large red letters) you’ll find one of those nifty referral codes you can enter to receive a free $20 credit on your bill – and all you have to do is sign-up! It couldn’t be any easier. Thanks Google. 😎
Before we get into examples of what a referral code looks like, let’s define what a referral code is really quick. A referral code is merely a special combination of letters, and numbers (or both) which are utilized as an identifier.
Companies like Google can use these referral codes to generate additional traffic from their existing users. I think most people know how powerful word of mouth can be for just about any type of business. If someone recommends a specific product, their friends and family will almost always give that item more attention – even if only out of curiosity.
Referral codes within programs like the one “Fi” is offering, can be used to keep track of who the original referrer to the program was. The main reason a business might use a referral code is simply to connect their referrals to the folks who deserve a reward for their efforts. This way if rewards are redeemed, credit can be properly passed on to the appropriate individuals. The credit is usually distributed in some form of monetary value, but it certainly doesn’t have to be that way.
Referral codes like Google’s are basically at the heart of every good referral program, in fact, they are the only thing that makes them work. Without the use of these codes, you wouldn’t be able to determine how well your referral program is working. The biggest problem is that there would be no method to dole out incentives, which would also ultimately make such a program very un-appealing to those who’d like to refer.