Referral marketing: What It Is and How It Works

Referral marketing is a strategy that taps into the power of word-of-mouth recommendations to drive sales and create sustainable income streams. Banks in India such as IDFC FIRST Bank have embraced this approach, using referral marketing techniques to empower customers and help them earn money online.

This article explores how referral marketing functions and why it is a crucial tool for businesses, focusing on IDFC FIRST Bank's MyFIRST Partner referral program as an example. IDFC FIRST Bank's MyFIRST Partner program offers weekly pay-outs directly into referral partners' bank accounts. This unique approach exemplifies how referral businesses can help in establishing a secondary income stream.

How does referral marketing work in India?

The mechanics of referral marketing in India can be broken down into three key steps, each contributing to the success of programs like IDFC FIRST Bank's MyFIRST Partner:

1. Read about a referral program and sign up
 

The first step involves customers learning about and enrolling in a referral program. In the case of IDFC FIRST Bank, the process is simple, requiring no physical documentation to sign up. Customers can download the MyFIRST Partner app to know more about IDFC FIRST Bank’s referral program.

2. Understand the underlying product and start referring it to people
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After completing the enrolment procedure, Referral partners familiarise themselves with the product, such as IDFC FIRST Bank personal loans. After signing up for the program, MyFIRST referral partners can start referring IDFC FIRST Bank’s personal loans to other people in their social circles.

3. Earn a regular monthly income
 

Referral marketing comes full circle when referral partners receive periodic pay-outs. IDFC FIRST Bank's MyFIRST Partner program allows referral partners to earn a 1.5% commission on each loan referral. Since loan referral earnings are uncapped, referral partners can earn more than ₹1,00,000 per month by successfully referring personal loans. This reliable income stream showcases the potential of referral marketing as a genuine financial opportunity.

How to build a second income source through referral-earning apps?
 

Creating a second income source through referral-earning apps demands a strategic approach:

1. Your referral-earning app should be technically strong
 

Just like the user-friendly MyFIRST Partner app, your chosen platform should be reliable, easy to navigate, and equipped with essential tools for effective referrals. You can directly contact IDFC FIRST Bank’s relationship managers through the MyFIRST Partner app.  

2. You must keep improving your communication skills
 

Remember that the better your interpersonal skills, the more referrals you’ll be able to make, which will help in turn help in earning more through the MyFIRST Partner program. Clear communication is key when introducing a product to your network.

3. The bank’s referral services must offer access to relationship managers to answer queries
 

IDFC FIRST Bank helps referral partners know more about its personal loans by offering access to relationship managers and a central helpline through the MyFIRST Partner app. Access to experts like relationship managers ensures your referrals receive prompt answers to their queries, enhancing your credibility and the overall customer experience.

4. Develop the habit of allotting some time to the referral program every day
 

Consistency is key. Aim to make referrals a part of your routine, allowing you to earn a significant amount steadily over time.

5. Referral partners must learn and adapt
 

The digital landscape evolves rapidly. Stay updated with industry trends, marketing strategies, and technological advancements to refine your approach.

Who can sign up for IDFC FIRST Bank's referral program?
 

IDFC FIRST Bank's MyFIRST Partner program is open to any Indian citizen who is at least eighteen years old and holds a bank account with an Indian bank. This inclusive eligibility criteria ensures that a wide range of individuals can tap into the potential of referral marketing, regardless of their background or profession.

Referral marketing has emerged as a powerful tool, reshaping how businesses engage with their customers and how individuals create sustainable income streams. Banks in India, exemplified by IDFC FIRST Bank's MyFIRST Partner program, have harnessed the potential of referral marketing to connect with customers and provide them with a genuine opportunity to earn money online.
 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.