38 Referral Marketing Statistics that Will Make You Want to Start Your Network Marketing Business Right NOW.

If you’re not yet leveraging the power of word of mouth marketing, here are some referral marketing statistics that will change your mind and make you want to implement a Refer a Friend business now – network marketing.

“One customer, well taken care of, could be more valuable than $10,000 worth of advertising.”  – Jim Rohn

Referral marketing is a bigger deal than some companies may realize. Every day, billions of recommendations happen just because someone likes a product or a service and tells someone, who then tells someone else, who in turn tells someone else–it’s human nature to talk about things we like.

Chances are your family and friends are satisfied customers who are talking about your (or someone else) brand right now, but are you giving their advocacy the attention it deserves, let alone capitalizing on it?

Referral Marketing Statistics: The Power of Word-of-Mouth

  • The Word of Mouth Marketing Association reports that every day in the United States, there are approximately 2.4 billion brand-related conversations. People frequently talk about the products and services they enjoy, and the companies who offer them.
  • 92% of consumers trust referrals from people they know – Nielsen
  • People are 4 times more likely to buy when referred by a friend – Nielsen
  • 77% of consumers are more likely to buy a new product when learning about it from friends or family. – Nielsen
  • 81% of U.S. online consumers’ purchase decisions are influenced by their friends’ social media posts versus 78% who are influenced by the posts of the brands they follow on social media. – Market Force
  • 43% of consumers are more likely to buy a new product when learning about it from friends on social media. – Nielsen
  • 85% of fans of brands on Facebook recommend brands to others. – Syncapse
  • 84% of consumers say they either completely or somewhat trust recommendations from family, colleagues, and friends about products – making these recommendations the information source ranked highest for trustworthiness. – Nielsen
  • 74% of consumers identify word-of-mouth as a key influencer in their purchasing decision. – Ogilvy/Google/TNS
  • 1 offline word of mouth impression drives sales at least 5x more than 1 paid, and much more (as much as 100 times more) for higher-consideration categories. – WOMMA
  • Word of mouth is the primary factor behind 20% to 50% of all purchasing decisions. – McKinsey
  • 49% of U.S. consumers say friends and family are their top sources of brand awareness.
  • 71% of consumers are more likely to make a purchase based on social media referrals.
  • On social media, 58% of consumers share their positive experiences with a company, and ask family, colleagues, and friends for their opinions about brands. [SDL]
  • Consumers rely on word-of-mouth 2x to 10x more than paid media. – Boston Consulting Group
  • 55% of consumers share their purchases socially on Facebook, Twitter, Pinterest and other social sites.
  • 59% of Pinterest users have purchased an item they saw on the site, 33% of Facebook users have purchased an item they saw on their news feed or a friend’s wall.
  • Word-of-mouth has been shown to improve marketing effectiveness by up to 54%. –  MarketShare

Referral Marketing Statistics: The Role of Incentives

  • More than 50% of people are likely to give a referral if offered a direct incentive, social recognition or access to an exclusive loyalty program. –  Software Advice
  • 39% of respondents say monetary or material incentives such as discounts, free swag or gift cards greatly increase their chances of referring a brand. –  Software Advice
  • 70% of email readers open emails from a brand or company in search of a deal, discount, or coupon. –  Campaign Monitor
  • 65% of consumers say that receiving rewards impacts their frequency of purchase.
  • 79% of people say their primary reason for “liking” a company’s Facebook page is to get discounts. –  Market Force
  • 64% of consumers say that rewards impact how much they spend.
  • 69% of consumers say that they’re more likely to try a brand if it gives rewards.

Referral Marketing Statistics: The Results

  • Referral Marketing generates 3-5x higher conversion rates than any other channel.
  • Referral programs can bring an average of 20,000 new email addresses per month – Social Annex
  • The lifetime value of a new referral customer is 16% higher than your average customer. –  Wharton School of Business
  • The Lifetime Value of a referred customer is 25% higher than that of other customers – Wharton School of Business
  • When specific case studies were analyzed, researchers found a 10% increase in WOM (off and online) translated into a sales lifts between 0.2 – 1.5%. –  MarketShare/ Keller Fay Group
  • Referred customers bring you 25% higher profit margin.
  • A referred customer is 18% more loyal than a customer acquired by other means.
  • Referred customers are 4 times more likely to refer more customers to your brand.
  • Customers referred by other customers have a 37% higher retention rate.
  • Customers acquired through referrals spend 200% more than the average customer.
  • Robust advocacy-marketing programs are achieving significant revenue gains—10 to 20 percent for established products and up to 100 percent for new products.
  • One of Social Annex’s referral marketing clients saw a 9.7% increase in conversion. – Social Annex
  • Another one of Social Annex’s clients saw an average of $100,000 in monthly revenue just from referral orders – Social Annex

Article source: socialannex.com


This is a stone cold stat that network marketing is organically, and naturally the easiest way to earn extra income or start a full fledged business of your own. This shows me just how much money is spilling out of every person’s mouth when they mention a product or service from a company they buy from. On average, $1.3 million worth of FREE ADVERTISING leaks out of every mouth every single day PER BRAND!!!! To me, that says your mouth, tongue and everything has a price on it that corporations use as leverage when you advertise a brand via word-of-mouth.

So why — oh WHY haven’t you ask for a monthly residual check from these billion dollar conglomerates? Don’t you have needs and wants you wanna get for you (and possibly your family)? I mean since it’s “all business” to them, why not have it “ALL BUSINESS” for you too?!

Network marketing is not hard when you think about it. Word of mouth, your friends and family buy it because you bought it, they try it, they like it, they buy more of it, you get paid! And to make it extra delicious, you all can make a pact as friends and family to buy from each other, leverage the company’s business model to pay you hundreds, thousands, or even millions a year in commissions to pay everyone IN your circle of family and friends. Therefore, everyone can chip in on the rent/mortgage, and any other expense you have, plus enough to take that dream vacation, or pay for college, or grab that dream car, or whatever floats your boat.

In other words; there is NO SUCH THING AS A “WEALTH GAP” when you have the ability to leverage the power of your mouth, and word of mouth advertising. Welcome to the benefits of being human, welcome to network marketing!

To your success 😉


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