A referral bonus is a financial incentive offered by companies to encourage employees or customers to recommend new candidates or clients. When someone successfully refers a person who is hired or makes a purchase, the referrer receives a bonus as a reward. This practice helps businesses grow their workforce or customer base through personal networks. Typically, the amount of the referral bonus varies depending on the company and the position or product involved. Some organizations may offer a fixed sum, while others might provide a percentage of the new hire's salary or a discount on future purchases.