Referral marketing is a method by which businesses encourage their customers to promote their products or services to friends, family, and acquaintances. This word-of-mouth strategy leverages the trust and personal relationships between the referrer and their network to gain potential customers. Typically, referral marketing involves incentives for both the existing customer who refers and the new customer who is being referred, such as discounts, free products, or other rewards. The effectiveness of this marketing approach lies in the fact that people are more likely to trust and try out a product or service when it is recommended by someone they know and trust. This strategy can be particularly powerful because it not only helps acquire new customers but also reinforces the loyalty of existing customers, as they are rewarded for their advocacy. Referral marketing can be facilitated through various means, including referral codes, affiliate programs, or simply through verbal recommendations. Businesses often use this strategy in conjunction with other marketing efforts to maximize their reach and customer base growth.