The tactic of double-sided referral programs for exponential network growth is starting to get out. Airbnb, Uber, Dropbox and many other companies are using it to build giant global networks…more here.
The question I have is: “Could cryptocurrencies use this tactic to build insanely big global networks?”
Here is why I believe the answer is YES, and the perfect mashup to bring mass adoption.
- Cryptocurrency Network Attributes
- To understanding why these referral programs will be so powerful, first you need to understand that currency is effective if more users have it and they use it. So as more people are referred, the currency gains in value. This creates a positive feedback loop so that more users will feel confident referring more friends.
- Social Proof
- If I am able to get you a discount, and I get a discount in return then I am adding to the value of your life and have real monetary incentive to do so.
- FOMO (Fear of Missing Out)
- Social circles, groups of friends and family will not want to miss out on the next new thing and know that they can get a discount AND help out their friend get a few bucks as well.
- Mutual Back Scratching
- To help out a friend is cool, but if you get something in return of equal value then the deal is complete. It’s a rare 100% perfectly fair deal, you both get the exact same thing (ie: %5 Off). In getting this square deal, you strengthen your friendship because being friends got you a 1+1 =3 synergy that alone you could not get.
Customer referral programs are a serious growth lever for many mainstream companies already, cryptocurrency can use these strategies to complement other investor acquisition tactics.
More on Simple Referral Program Setups to Get you Started: http://crowdsale.co/#refer