Referral Program ROI Estimator
See how much extra revenue you could generate by turning your customers into advocates.
Estimated Monthly Impact
Extra Revenue
$0
New Orders
+0
Net Profit (Revenue - Rewards)
$0
ROI
0%
Note: Typical industry referral rates are 2-3%. Optimized programs with Mage can reach 5%+.
Why Launch a Referral Program?
Referral marketing is one of the highest-ROI channels for eCommerce. Why? Because 92% of consumers trust recommendations from friends above all other forms of advertising.
How the Math Works
This calculator estimates your potential revenue based on three key levers:
- Advocate Rate: The percentage of your customers who will share their referral link. (Industry avg: 1-3%, Mage avg: 5%+)
- Friend Conversion Rate: The percentage of referred friends who actually make a purchase. (Typically much higher than cold traffic).
- Reward Cost: The cost of the discount or free product you give to incentivize the referral.
Lowering CAC with Referrals
Customer Acquisition Cost (CAC) is rising across Facebook and Google Ads. Referral programs act as a counter-balance. Since you only pay the reward cost after a successful sale, your CPA (Cost Per Action) is fixed and guaranteed profitable.
Did you know?
referred customers are 18% more loyal and have a 16% higher lifetime value than customers acquired through other channels. They trust your brand before they even buy.
Ready to increase customer lifetime value?
Join 100+ Shopify stores using Mage to turn one-time buyers into loyal repeat customers.
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