I’m fortunate to have an incredibly talented editorial team that makes receiving an email every morning enjoyable. And Morning Brew engineered their referral program to work this way. That’s partly out of necessity (as employee #2, you have to wear a lot of hats), and partly out of interest (I’m obsessed with growth, but also love software development and creating product roadmaps). We have a dedicated “Share The Brew” section included in every single newsletter we send. Lastly, we provide a section dedicated to sharing on social platforms (and SMS, WhatsApp, and Messenger on mobile). If I broke the entire referral process into a funnel, it would look like this. We don’t need to purchase raw goods, ship products, etc. Morning Brew is a free daily newsletter geared towards millennial professionals. The Morning Brew grew their newsletter subscribers from 100.000 to 1.5M in 18 months using a friend referral system. No one wants to look foolish by abandoning a product they’ve so vehemently recommended so soon after making that recommendation. Part 2: Key Features of Morning Brew’s Referral Marketing Plan. Wealthfront has an Invite Program that gives both the referrer and referee an additional $5,000 managed for free. We send our daily email to 1.5M people every morning, ~45% of people open the newsletter on any given day, Acknowledge the existence of the rewards program, Understand how to share their unique link, Have received some sort of gratification for doing so. Whenever a new subscriber signs up using the unique referral link, the system tracks the relationship between the referring subscriber (‘advocate’) and the new subscriber, The new subscriber needs to confirm their email. To Jenny Rothenberg who has worked side by side with me the past 10 months in helping to optimize this very referral program (and also helped edit this piece). In order to filter out spam emails or fraud, there’s a double-opt-in process; the user needs to confirm their email to finish subscribing. The company’s mission is to drop a newsletter full of engaging, entertaining business news to young professionals every morning. Morning Brew’s referral machine was built from scratch – not bad value for acquiring over 30% of Morning Brew’s total subscribers. In addition to requiring referrals to double opt-in and confirm their emails, I’ve implemented a few defensive measures: I’ve also built an integration with Forest Admin to create an admin panel with custom functions that allows our lovely interns the ability to provide some basic level of “customer service.” With thousands of people referring others every single day, there are plenty of opportunities for readers to get confused or potentially fall through the cracks. People first need to know you have a rewards program (and how it works) before it can become effective. How can we continue to optimize the language around the referral program to entice a larger portion of our audience to participate? So, they upped their email defenses by adding third party email validation as well as sending out an automatic email every time a subscriber hit a milestone. Here is how they got their first 2000 subscribers. The goal was simple: to create the most badass and effective referral tool in the world. However, to appease the email gods — I decided it was in the best interest of the company to make the switch. While the referral program obviously doesn’t account for all 1.5 million subscribers we have today (we began pursuing paid acquisition in early 2018), it does account for over 30% of our total subscribers and is the “secret sauce” that makes our growth flywheel spin. We’re trying to maximize the amount of value (in terms of growth) users can contribute to our company. The lowest hanging fruit in the pipeline is what I call “nudge emails.” Essentially, readers who have been stuck for two weeks just one referral away from a milestone (2, 4, 9) receive an email to nudge them to get that one last referral. Keeping the Referral Program Rock Solid with Automation. The same type of referral program that worked for the newsletter giants like Morning Brew … Starting with the latter, we increased the conversion rate by over 4% through a few iterations involving the header, subheader text, button text, and button color, and we’re still continuing to test new hypotheses. Morning Brew. Write on Medium, https://www.morningbrew.com/daily/r/?kid=d8aabc, The top Pinterest Engineering blog posts of 2020, 4 Keys to Successful Social Media Networking in 2021, Marketing 101: Your Customers Don’t Want to Buy Your Products, The power of influence in an age of ‘influencers’. Is the product valuable to the end user/customer? The more subscribers you bring, the more rewards you get – and the better rewards you get. Morning Brew has grown from a dorm room start-up to a $75 million media company in less than six years. There’s even a link so subscribers can quickly share their referral link via SMS on the bottom of the newsletter: Giving these options to subscribers to boost their referral numbers means they can reach people who might be interested in Morning Brew’s content, even if they were never in their email database. He also noted that he needed to build in safeguards to protect the referral program, including: Ultimately, the technology helped to ensure new subscribers & referrers were accurately tracked and credited. This prevents the user from wasting their time coming up with a way to explain it to a friend, and quite frankly — we probably can explain it a bit better. So, Morning Brew made the switch. The new variation beat out the original by 3.1%. Many enterprise brands choose to use referral program software (like, say, ReferralCandy) to handle the complexity, while others like Tesla or Amazon build their own. Double Opt-Ins are a tool Morning Brew uses to make sure their new subscribers are real people—not spambots. Morning Brew’s referral program was responsible for much of the growth from 0 to over 1.5 million subscribers early. Morning Brew has capitalized on this and used referral marketing to slash their paid acquisition costs. Learnings aus dem „Morning Brew“-Referral-Programm. This option educates the user about their unique referral link and gives them flexibility on the places they can share it. Five years later, the Brew is a modern media superstar with several spinoff products and more than 2.4 million subscribers. The decision to move from a progress bar to a numeric counter was actually less data-driven than it was aesthetic; however, we haven’t seen much change in effectiveness. Morning Brew is a one-sided referral program, rewarding the current subscriber for their referred customer. Check your inboxMedium sent you an email at to complete your subscription. Morning Brew’s referral machine was built from scratch – not bad value for acquiring over 30% of Morning Brew’s total subscribers. If an address was a clear fake or was trying to take advantage of their rewards system, Morning Brew kept a record and blacklisted emails, people, and even specific IP addresses to keep their list clean. Instead, Morning Brew encourages each subscriber to boost their referral numbers by sharing their unique link across social media pages. Convincing someone to go out of their way to share our product (or any product) is a challenge, so most of our focus goes into enticing them to get from 0 to 1 referral. In all, we have eight milestone emails. What better way to visualize the rewards than with a progress bar? This is also known as a. We’ll rotate between animated gifs and showcasing specific rewards. 100 referrals: we ship a “Brewneck” (Morning Brew crewneck sweatshirt). We split our testing audiences into two main cohorts: referrals via email invites and all other referrals. As with the t-shirt, the Brewneck is legitimately one of the more comfortable articles of clothing I own. You can also make the argument that the swag doubles as an indirect marketing channel, meaning that when someone is walking around wearing a Morning Brew t-shirt or drinking from a Morning Brew coffee mug in the office, it’s increasing our brand’s exposure. Using Sailthru, we’re able to split test the email 5 different ways at any given time. This is why we prioritize the “Share via email” section on the referral hub, placing it above the social sharing buttons. The side project was an immediate hit, and the newsletter began quickly gaining momentum on campus. If someone goes out of their way to share a product or service with their friends, classmates, co-workers, etc., I think the likelihood they continue to engage with that product increases. It’s likely that additional “exclusive” content is aligned with the interests of a reader who already enjoys receiving the Brew. Morning Brew was a side hustle for almost two years. All of this should sound fairly similar to the referral hub section above…because it is. Depending on the source, site visitors respond to different messaging. Phase 1: The Market Corner Morning Brew was first called The Market Corner and it was specifically designed to help finance students get the relevant news they needed for their class in a better format. While that effectively means we decreased our conversion rate 15% on referral signups, we’ve also ensured higher quality subscribers join our list. Follow me on Twitter | Connect on LinkedIn, A network of business & tech podcasts designed to…. After testing out a bunch of different email service providers, the company started using Sailthru to run their campaigns. Again, with each of these automated emails sent along a user’s journey, we test them five different ways to optimize the CTR (click through rate). This entire process is what we call “the referral pipeline.” Ultimately, our goal once you get your very first referral is to push to get your 3rd, 5th, 10th, etc. That is, over 75,000 people have shared Morning Brew with at least 3 people. In other words, people who have seen the “Share the Brew” section dozens of times and chosen to ignore it now have an incentive strong enough to click the button taking them to their referral hub. The result is what you would expect. Given that data, perhaps it’s best to only provide the option to invite via email, although that could have an adverse effect. Ask any company what their biggest cost of early growth was and you’re likely to be met with the same answer: advertising and marketing. One good way to create a successful referral program is to look at how other people did it. This included aspects like selecting referral incentives, preventing referral fraud, and a focus on getting the referral messaging right. Because the biggest obstacle is getting a user to share for the first time, we’ve tested this initial “7 day email” from dozens of different angles. One surprising demographic that outperformed them all? About a year ago we decided to pony up and purchase the nicest custom t-shirts we could find. Morning Brew has implemented a milestone-based referral program, which has a dedicated “Share The Brew” section baked into every single newsletter we send. We’ve tested it by incentivizing Light Roast vs. stickers vs. showcasing all of the rewards vs. a genuine friendly message from our CEO vs. offering Starbucks gift cards, etc. You either sign up or you don’t. A third-party email validation software for incoming subscribers, A blacklist of 600+ fake email domains, nefarious actors, and blocked IP addresses. For example, every five people who share via WhatsApp results in one confirmed subscriber, whereas it takes ~25 people sharing via Twitter to result in a single subscriber. I’m just fortunate to be surrounded by an incredible team that makes each additional percent that much more enjoyable. (Reg. Again, this reward comes at no real cost to Morning Brew. To Austin Rief and Alex Lieberman who both took a chance in hiring me 2 years ago and have since worked closely with me to build Morning Brew to be the best it can be. You can think of it as an equation: Brand Attachment * Quality Content = More Sharing. Here’s how it works: Product lead Tyler Denk noted that the process took a long time to develop. How Morning Brew's Referral Program Grew Their Subscriber Base to 2.5 Million. A: At the bottom of each Morning Brew newsletter you will find your custom referral code and referral hub. Referrals continued to be the company’s #1 source for growth, even during a worldwide pandemic: (Credit: @austin_rief, cofounder of Morning Brew), Part 1: The Technology behind Morning Brew’s Referral Marketing System. To this point: In exchange for 10 referrals, we have provided value in the form of premium content, an exclusive community, and swag…all at the cost of $1.25. Shakepay: https://shakepay.me/r/KRQ31DB Once complete, the ShakingSats option becomes available. It covers stock exchange … ): Morning Brew’s counter is embedded in every subscriber’s email for a single reason: motivation. I joined Morning Brew in 2017, back when our daily newsletter had a modest 100,000 subscribers. Not every company has the resources to build and manage their own referral program system. Case in Again, something we are continuing to test. ReferralCandy Product Update [Jan 2021]: Send Emails through your Own Domain! We provide a value proposition at the top, give the reader an update on their current referral count, and outline all of the rewards in a visual and easy-to-digest manner. Each is being tested multiple ways to optimize the number of recipients who take action and click “Share the Brew” (which takes them right back to their referral hub). Referral rewards are a key component to Morning Brew’s email marketing strategy. Users can manually enter in people’s emails or access their contacts via a 3rd party integration with Cloudsponge, which allows them to import contacts from Gmail, Yahoo, or Outlook. This won't be a surprise to you. How Morning Brew’s Referral System Generates 1000 Subscriptions Per Day. One of their team members has actually written an article about this and explained how it was possible. ), Girlfriend Collective had a similar story, Project Home DIY: Building a Creativity Business from her Garage, ReferralCandy Customer Stories – Bolden USA: Embracing Beauty, Empowering Women. It’s helped turn readers into evangelists and evangelists into walking advertisements. A referral program can help you grow your email list exponentially. Sandeep Bansal. Adding double-opt-in was crucial for another reason: Morning Brew’s rewards system. That 4% increase in conversion rate leads to more than an additional 4,500 subscribers per month via the referral program alone. After a reader opts to share their unique referral link with someone, the goal now is to make sure that someone becomes a subscriber. It briefly summarizes headlining business news in a witty, easy-to-digest way, with sprinklings of lifestyle news, so it's easy to stay informed without getting bored. Informative, witty, and everything you need to start your day. We know our readers are busy and a majority typically read the newsletter while getting ready in the morning, commuting to work, or sitting at their desks to start their day. This section’s purpose is to inform the casual reader about the referral program. In 2020 they’re on track to make $20 million, not bad for a free newsletter, so let’s hope the content keeps getting better and better. If you’ve been a subscriber of Morning Brew for more than a few months, you’ve probably noticed that we do a big giveaway every 4–5 weeks. It’s entirely custom built, and after putting in a ton of time speaking to people about the program, I decided it’s time to put these thoughts on paper. Morning Brew coffee mugs, tees or sweaters become conversation starters for subscribers, who can then tell their friends or colleagues about Morning Brew and then refer new subscribers (for more rewards). Once a reader gets their very first referral, it’s apparent that they: Despite the existence of the “Share the Brew” section in the newsletter, there’s no guarantee they a new subscriber knows about or understands the rewards program. Said in broader terms — the page’s main goal is to educate, motivate, and assist the end user to continue to share our product with others. Our generic share section accomplishes similar goals to the referral hub. Our admin panel makes it simple to adjust readers’ referral counts and ensure they are getting the proper rewards. B2B/SaaS Content Writer who helps companies fuel their growth. You’ve come this far, might as well just get one more, right?”. Each subscriber has a unique code that is linked to their account, generated on sign-up, This code is used to generate a unique referral link, which can be shared with others. The more people you refer, the more entries you have. 25 referrals: we ship readers a super soft Morning Brew tri-blend t-shirt. During a Jan. 16 appearance on Motley Fool Live, Morning Brew co-founder Alex Lieberman explained the referral program to Motley Fool Marketing Manager Margaret Powell and … After a few months, I turned my attention to maximize the value of the 100,000 existing and passionate subscribers. Join me in staying up-to-date on all the technologies shaping the future of business with Emerging Tech Brew. Newsletter Referral Programs is our new thing.. We’re always on the look for amazing campaigns that we feel like they change the game for business. Making the rewards as clear, visual, and repetitive as possible is crucial. Over the past few years, one of the most common replies we get each morning is some variation of, “what software do you use for your referral program?” The answer is we don’t use any third party applications. A big part of its success comes down to the psychology behind their offers. Here’s the genius behind this offer: It costs the company nothing to produce (outside of staff costs), yet the subscriber still feels like they’ve unlocked access to something special that money literally cannot buy. When building a referral program, it’s important to consider all sorts of tradeoffs — whether it’s profits, time, or something else specific to your business. Does that mean we should hide those social networks to users who are on this page via a mobile device? To force the issue, we send a dedicated email to all subscribers who have 0 referrals exactly 7 days after they subscribe. ReferralCandy is a product of Anafore Pte. The beauty of referral marketing is that you have your trusted customers and subscribers in the trenches doing that hard work for you—for free. Early on in the company’s referral program, they used a single-opt-in system whenever a new user subscribed to their email list. Up until that point, all of our growth had come from word-of-mouth and the nonstop hustle of the Brew’s 2 co-founders, Alex Lieberman and Austin Rief. The messaging is simple: For the next X hours, every person you refer who confirms their email is an entry into the giveaway. Now that you’re familiar with the nuts and bolts of the referral program, let’s talk about the top of funnel. First, we provide users with their unique referral link along with explicit directions on how to use it. We’ve tested giving away MacBook Pros, iPhones and Samsung Galaxys, $2,000 cash, trips to Singapore, and trips to NYC to hangout with Brew employees and take an exclusive tour of the Nasdaq. Referral rewards are encouraged from the first email sent to Morning Brew subscribers. Since then, we’ve seen a conversion rate of over 85% on referral signups going on to confirm their email. When looking to maximize growth, there are two essential criteria to consider: Morning Brew grew organically via word-of-mouth for years before an official referral program was ever put into place. We also aim to remove as much friction as possible, so we provide the reader with two options on how to proceed to share the Brew. Not only do you want those who refer 100 people to feel appreciated in receiving quality swag, but when it doubles as a comfortable product…people actually prefer to wear it. You may also like our article on effective referral messaging: How to Get Your Referral Messaging Right (with 11 great examples!). One good way to create a successful referral program is to look at how other people did it. HQ Trivia provided extra lives when users referred someone else to play. Morning Brew grew its audience from 100,000 to 1.5 million in 18 months in part by implementing “a milestone-based rewards program that was extremely calculated and demand-driven.” The top of the page explicitly states the value proposition to the user, i.e. Morning Brew has been on quite a dramatic growth streak in recent in years. Every subscriber has a unique referral code associated with their account (mine is d8aabc). For example, if you’ve been stuck at four referrals for two weeks, you’ll receive an email saying, “Hey, congrats on getting four referrals and thanks so much for sharing the Brew with others…but did you know you’re only one referral away from getting stickers? That made it possible for readers to share the individual newsletter stories on their social media accounts directly from the newsletter. In exchange, they’ll get content, community, and swag. And if you’ve made it this far and aren’t already a subscriber—feel free to subscribe for free here. It’s nothing revolutionary, but it’s a massive stimulant to the referral program. Whether you are in the media space or have a physical consumer product, I believe the strategies here apply across industries and I hope you find tremendous value in this post. When I first joined the company, our philosophy was to grow at all costs. Factoring in the costs of mailing out rewards to subscribers who refer (on average) five signups, the company estimates that acquisition costs for referred subscribers come in at just 25 cents – a comparative bargain. I wanted to share how we did it — both to tell our story, but also because we’ve benefitted from others who have shared their story with us along the way. The ultimate goal here is to remove any bit of friction. Blacklisting said nefarious actors from being able to refer any additional people. 50 referrals: we ship readers a Morning Brew “Rise and Grind” coffee mug (a fan favorite). They can “Click to Share” (which takes them to their unique referral hub), or they can “copy & paste” their unique referral link. Clicking the link to confirm their email triggers an action on Sailthru to send an API request to our database. Next, we allow users to refer others via email. Let’s take a look. You will always be their “referrer.”. The reason for this was Sailthru’s ability to add logic to Morning Brew’s emails and customize messages depending on the referral. Case in point: Morning Brew. You will get an email to confirm your email. Referrals & Deals for: Morning Brew. My referral count will be incremented by 1, and you may or may not receive a transactional email alerting you of the update (depending on how many referrals you have…but more on that in a bit). And that was especially important when issuing rewards. Using a third party email validation software to validate every email address that enters our ecosystem. For example, if you have 0 referrals: on Monday you’ll see a plug about Light Roast, Tuesday you’ll see something about stickers, Wednesday a t-shirt, Thursday a coffee mug, etc. Here’s another look at what subscribers see when they log in. For example, if you have fewer than 3 referrals, we know you don’t have access to Light Roast. A big part of Morning Brew’s aim early on in their referral campaign was customizing their email content. When Alex and Austin started the company in 2015, they had a budget of 100$/month. For the first email you receive after you get your first referral, we’ve tested a congratulatory message, a sincere “thank you,” a locker room speech to get you to run through a wall, and everything in between. By pressing any of these sharing buttons, a user’s unique referral link is appended to a pre-drafted message waiting to be shared with their network. It’s easy and free to post your thinking on any topic. Now, the company’s average customer acquisition cost ranges between $2-$5 for each customer, but their referral acquisitions are a lot less than this. By getting your current customers or subscribers to recommend your product to their inner circle, it increases not only the chances of them joining your list but also their overall lifetime value. Morning Brew was first launched as a PDF-based business news digest called The Market Corner by University of Michigan student Alex Lieberman. Want to learn how they built an audience of 2.5 million? Once it’s copied to their clipboard, they can do with it as they please…whether it’s posting it on Reddit, sharing it with classmates, or texting it to a friend. The referral program they use is called a milestone referral system — and we’re going to show you how to do it, too. 0. At the end of the day, the rewards program is effective in incentivizing our most engaged readers to share the Brew with others. Since then, our audience has grown to 1.5 million — in just 18 months. You share the Brew three times, and we’ll add you to an additional email list at no real cost to the business. As we've already touched on, referrals have been a really big part of Morning Brew’s growth — the Morning Brew referral program drives about 30%, sometimes more, of new subscribers each month. Here’s how this works: This process took a long time to develop. My goal was simply to build anything that would grow the audience. The result: a milestone-based rewards program that was extremely calculated and demand-driven. As with everything else in our pipeline, we split test the messaging of this email several ways to optimize CTR. Our referral program is entirely custom-built using Ruby on Rails and a few integrations with our ESP (email service provider), Sailthru. 200. When your product is good enough that people instinctively refer others without any sort of incentive, that’s a strong indicator that you’re ready to build a referral program. Morning Brew uses a double opt-in process to confirm every email is legitimate (nice try poop@gmail.com). For theSkimm, referrals are responsible for about 20% of its audience, while Morning Brew revealed that around 30% of its subscribers have come in via referral. It’s extremely important that you’re able to effectively manage the referral program and take care of those who are going out of their way to share your product with others. Say you refer three friends, who all become subscribers – you unlock the reward of a Premium Sunday Newsletter. For the past two plus years, I’ve been working in a role that’s best described as a hybrid of engineering, product, and growth positions. Girlfriend Collective had a similar story. 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