Referral programs are marketing strategies that encourage existing customers to recommend a business's products or services to new customers. Typically, when a current customer refers someone who makes a purchase, both the referrer and the new customer receive rewards, such as discounts or cash incentives. This approach helps businesses grow their customer base while rewarding loyal patrons. These programs leverage the trust that people have in personal recommendations, making them an effective way to attract new clients. Many companies, including Dropbox and Uber, have successfully implemented referral programs, leading to increased sales and customer engagement through word-of-mouth marketing.