Websites · Glossary
What is a referral link?
A referral link is a personal web address a customer shares with friends, carrying a code that identifies them, such as shop.example/?ref=k3x9. When a friend opens it and later signs up or buys, the business credits the person who shared it, usually with points, a discount or account credit, and sometimes rewards the friend too.
A referral link is an ordinary web address with a code on the end. Everything that makes a referral program fair, from who gets credit to when a reward is paid, happens after the click.
Indunil Asanka · Co-founder
6 min read · Published
| Question | Referral link | Affiliate link | Promo code |
|---|---|---|---|
| Who shares it | Existing customers | Creators and partners | The business, anywhere |
| What the sharer gets | Credit, points or a discount | A commission on sales | Nothing |
| How it is tracked | A personal code in the link | A partner code in the link | Typed at checkout |
| Who pays out | The business, as credit | The business, as money | No payout |
| Main risk | Self referrals and throwaway accounts | Undisclosed paid promotion | Codes leaking to coupon sites |
What a referral link is
Every customer in a referral program gets a short unique code, and their referral link is the business's web address with that code attached. They send it by message, post it, or show it as a QR code. When a friend opens the link, the website notes the code. If the friend then does the thing the program rewards, usually signing up and making a first purchase, the business records that this friend was referred by that customer and gives the reward. Referral programs work because a recommendation from someone you know carries more weight than an advertisement, and because the reward gives people a reason to make the recommendation they might have made anyway. A referral link differs from a general discount code in one key way: it identifies who sent the customer, so the reward goes to a specific person rather than to anyone who finds the code online.
How the code is captured and credited
When someone arrives with a code, the site stores it in the browser for a set period, commonly 30 days, so a friend who comes back a week later still counts. A sensible rule is that the first code wins: a later link from someone else does not replace it. When the friend creates an account, the site claims the referral once, linking the new account to the referrer, provided the account is genuinely new and the code does not belong to the friend themselves. The reward then waits for the qualifying event. Paying out on sign up alone invites throwaway accounts, so most programs reward a first paid order above a minimum amount, and only once the payment is confirmed. The referrer sees a list of their referrals and rewards, showing friends only by a first initial so one customer's purchases are not exposed to another. Commission programs track amounts owed and pay them separately.
When a referral program works
Referral programs work best for businesses customers already talk about: food boxes, gyms, salons, subscriptions, local services and products people use in front of friends. They work when the reward is worth sharing for and the product is good enough that sharing does not feel awkward. A two sided reward, where both the referrer and the friend get something, usually performs better than rewarding only the referrer, because the person sharing feels they are giving a gift rather than earning a fee. Referral programs suit repeat purchases better than one off sales, since the reward is usually spent on the next order. They are a poor fit for products bought rarely or privately. Separately, an affiliate program pays creators or partners a commission for sales, often for months; it is closer to a sales arrangement with disclosure duties than a friendly recommendation, and needs clearer terms and payment records.
Common mistakes
Rewarding a sign up rather than a paid order, which gets gamed within days. Letting customers refer themselves with a second email address. Allowing a later link to overwrite an earlier one, so credit goes to whoever shared last. Showing referrers their friends' full names or order totals. Encouraging customers to email their whole contact list, which can make the business responsible for spam it did not send itself; a share button the customer controls is safer than the business emailing friends on their behalf. Rewards so small nobody bothers, or so large they attract people who only want the reward. No end date or terms, so a promotion that should have closed keeps paying. And no way to reject an obviously fraudulent referral, so the business either pays it or argues with a customer about rules that were never written down.
Where it shows up in OneCraft
When a site is generated with a referral program, the AI builds it into the site's own database from its referrals guide. Each signed in customer gets a code and a refer page with their link, Copy and Share buttons, the reward rule in one sentence and their referrals with friends' names masked. A code in the link is kept in the browser for 30 days and never replaces an earlier one, and a referral can be claimed once, right after a new person signs up. Rewards follow a paid order only, as points, a one use discount code or a commission tracked in the database and paid by the owner outside the site. Admins can reject self dealing and export referrals. A launch queue that moves people up by referrals is a separate waitlist capability. Card payments use Stripe on the owner's connected account.
Questions people ask
How long should a referral link stay valid after a click?
Thirty days is a common window: long enough for a friend to think it over, short enough that credit goes to the person who actually influenced them. Keep the first code a visitor arrived with, rather than the latest. Whatever window you choose, state it in the program terms so referrers know what to expect.
Is a two sided referral reward better than rewarding only the sharer?
Usually yes. A two sided reward, such as $10 off for each, makes sharing feel like giving a gift rather than earning a fee, and it gives the friend a reason to act now. Keep the friend's reward visible on the page they land on, so they know the offer is real.
Do I need to disclose that customers earn referral rewards?
For ordinary refer a friend programs between friends, the reward is part of the offer and stating it on the page is enough. Once people promote you publicly for rewards or commission, such as on social media, consumer and advertising rules generally expect the connection to be disclosed. Ask referrers to say they get a reward.
How do I spot fake or self referrals?
Watch for referrals from the same address, card or device as the referrer, many sign ups from one person in a short time, and friends who buy only the minimum and never return. Paying rewards only after a first paid order, and keeping a way to reject a referral, removes most of the incentive to cheat.
What reward works best for a small business referral program?
Something that brings both people back: account credit, a discount on the next order, a free add on or extra loyalty points. Cash works for high value services but attracts people chasing payouts. Size the reward against what a new customer is worth to you over a year, not the value of a single order.
Make one with websites
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Create a website with OneCraftRelated questions
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Written and checked by the OneCraft team. Last checked .