Referral Program Payout Calculator
Store credit costs cost, and brings them back.
Real cost per referral
$11.20
$35.80 cheaper than buying the customer
Store credit costs you $11.20 rather than the $20.00 face value, because it is redeemed against products you supply at cost. It also brings the customer back, which cash never does.
How the Referral Program Payout Calculator works
Store credit costs you cost of goods rather than face value, and it brings the referrer back into the store. Cash rewards cost full value and do neither — which makes credit the better instrument at almost any face value.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What does a referral actually cost?
The reward at your cost, not its face value, if it is store credit. A £10 credit on a 44% margin product costs you £5.60 and generates another visit.
Should both sides be rewarded?
Two-sided rewards consistently outperform one-sided. The friend receiving something is what makes the referrer comfortable making the introduction.
How does this compare with paid acquisition?
Almost always cheaper, and the customers retain better because they arrived with a recommendation. The constraint is volume, not cost.
What stops referral programmes working?
Being hidden. Most fail because nobody knows they exist — the mechanics are rarely the problem, the prompt is.