Black Entrepreneur Blueprint 443 – Jay Jones – The Easiest Way To Increase Your Sales Without Spending Money

In order to grow your business, you must continue to make sales. In today’s economy entrepreneurs don’t have the luxury of wasting money and resources on marketing and not getting a positive return on investment. But what if there was an easy way to generate sales without spending any money?

On today’s Black Entrepreneur Blueprint podcast episode # 443, Jay discusses one of the most overlooked strategies to make more sales without spending money.

Black Entrepreneur Blueprint # 443



Definition – A customer referral system is a word-of-mouth marketing strategy that rewards your existing customers when they share your brand or business with their friends, colleagues, and family members.

In exchange for bringing in new customers, a referral system gives existing customers an incentive such as a gift card, a discount, store credits, free products, swag, etc.

A formalized program also makes it easy for customers to share your brand, with a dedicated referral page and messaging. And they don’t just share with anyone: they refer good-fit leads who are more likely to purchase from you. Referral programs mobilize your happy customers and turn them into reliable advocates!


  • 78% of marketers singled out referral marketing as providing excellent leads
  • 4X – conversion rates are 4X higher for people that were referred
  • ½ – A referral is a primary factor in half of all purchases
  • 90% of shoppers trust referrals from family and friends
  • 75% of shoppers are more likely to make a purchase if referred
  • ed
  • 74% of shoppers will give a referral if offered an incentive


A customer referral program can be a big benefit to any business. Here are four of the main reasons you should start your own referral program:

1 Standardizes The Process – A referral program standardizes the way you invite and reward customers for sharing your brand with others. By offering a formal referral program – with clear and attractive rewards – you can increase the odds of your business getting word of mouth.

2 Attracts New Customers At A Low Cost – The cost of referral rewards is fixed (per referral), and these incentives are only paid for performance. The result is a much lower customer acquisition cost (CAC) compared to most types of advertising.

3 Brings In Higher Quality Customers – Referred customers have a higher retention rate than other customers and are proven to bring more value to your business. They are proven to spend 25% more and are 37% more likely to make a repeat purchase. They also have a 16% higher customer lifetime value than customers who were not referred. And referred customers are three times more likely to refer someone else, meaning there’s a high chance they’ll keep the cycle of referrals going and bring you even more top-tier customers.

4 Has A Proven Track Record Of Success – Some of the most popular businesses have seen success thanks to a strong customer referral program.

Examples include Some of the most popular businesses that have seen success thanks to a strong customer referral program.

PayPal’s famous referral program literally gave away money. The company started out by offering $20 to start an account, and another $20 to refer their friends (this number decreased through the years). As one of the first notable referral programs, it helped PayPal achieve 7–10% daily growth and a user base of over 100 million.

Dropbox also offered a referral program that was greatly inspired by PayPal. It led to a 60% increase in user signups, with over 2.8 million referrals taking place in the first 18 months. Even today, 35% of all signups come from the company’s referral program.

Harry’s Razors – Sometimes, referral programs are the catalyst that makes a brand a household name. For example, Harry’s Shave Club offered a referral program before it even launched. The tiered referral program worked wonders for Harry’s. In one week, they were able to gather almost 100,000 email addresses.


Now that you understand how referrals and referral programs help a business, it’s time to start building one of your own. But where do you begin? Here’s what you’ll need to do to create a referral program that delivers the most ROI:

Provide exceptional products – If your offering doesn’t stand out and make an impact, people won’t remember to refer you to others – no matter how great your referral program is.

Put your customers first – Develop a customer relationship and experience first so they can be advocates of your referral program

Have a clear marketing goal for your program – Why are you creating a referral program? Aside from more sales, is there anything else you hope to get out of it? A few other goals can include Increase customer loyalty (customer retention), Building brand awareness, Creating a viral marketing campaign, Driving customer acquisition,

Determine who will get the referral rewards – a one-sided incentive (only for the existing customer) or a two-sided incentive (for both the existing customer and the referred customer) This usually has the highest engagement.

Choose which reward to offer – Discounts/coupons, Store credit or points, Service upgrades or freebies, Free products, Free month subscription, Branded swag, External gift cards (i.e., Amazon, Apple, Visa), Donations to charity, Tangible referral gifts

Decide on a reward structure – single reward or tiered rewards based on the volume of referrals

Make it easy for people to refer – Provide multiple sharing options like a one-click referral link

Create your referral messaging – What message do you want to convey to your customers

Implement analytics and tracking – to know what’s working and what’s not

Figure out how you’ll tell customers about the program – How will you alert your customers about the new program: email, video, social media, etc?

Utilize referral program software tools – the easiest way to implement a referral program is by using software like

Use customer reviews with referral marketing – implement customer reviews and testimonials with your referral marketing


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