Recommendations or referrals are the most trusted form of advertising, as reported by Nielsen's Consumer's Trust in Advertising. This simply means that majority of people heavily rely on someone else's opinions in deciding what to buy. Another study also found out that referred customers can be a great driver of brand loyalty and striking profitability than any of your other clients.

A great testament to this is the well-known referral program of an online file hosting service which generated a 3900% customer growth in just 15 months since its launch. This evidence is good indicators that starting a referral program is a cost effective way for short and long term success