A referral bonus is a financial incentive offered by companies to encourage current employees or customers to recommend new candidates or clients. When someone they refer is hired or makes a purchase, the referrer receives a bonus, which can be a cash reward, gift card, or other perks. This strategy helps businesses grow their workforce or customer base through trusted recommendations. These bonuses benefit both the referrer and the company. The referrer gains a reward for their effort, while the company often finds high-quality candidates or loyal customers. Overall, referral bonuses create a win-win situation for everyone involved.