Advantages of Referral Marketing over Paid Search and Social Media Ads


In promoting an online gambling or betting business, online marketing can play a key role, especially if you choose the right strategy. And many companies behind iGaming platforms overlook referral marketing for unknown reasons, and very wrongly so. For marketers who haven’t yet turned their attention to a very effective – and far from new – marketing mechanism, referral ad might be the last thing on their minds. However, every entrepreneur who gives his users the opportunity to participate in the success of their iGaming product is unlikely to decide to turn off this marketing channel.


Advanced marketing heads have long since come to the conclusion that the lifetime customer value provided by a good referral program is many times greater than both social media and paid search. Moreover, referral marketing is devoid of the risks associated with paid search and social ads, which is another major advantage. We are here to show you the importance of referral systems as well as the advantages of referral marketing vs paid search.


What is Referral Marketing?

What is Referral Marketing?

Referral marketing is a method of promoting products and services by the so-called word-of-mouth method, where your existing customers tell potential users about your product. A similar concept is used by casino affiliate programs, however, the difference is that betting affiliates offer your product to strangers, while referrals tell their family and friends about it. Basically, a referral program is a strategy for reaching new users by using existing passionate users. Most of the time, it’s done spontaneously, but businesses have several tools to control how a referral marketing campaign works. There are many referral marketing examples we encounter in our daily lives. Suppose your friend likes the service at a nearby coffee shop and recommends that you drop in for a cup of coffee.


Some gambling affiliates think that word of mouth and referral marketing are the same thing. However, the difference is that the latter is more deliberate. That is, a business wishing to promote its products launches a referral network deliberately and encourages its loyal users to tell their friends about the brand. In the case of word of mouth, the process is mostly spontaneous.


 Why is Referral Marketing Such a Powerful Tool?

Why does referral marketing work?

As social creatures by nature, people like to share their experiences, both negative and positive. You can come up with a beautiful logo, tell a credible story and have a catchy slogan, but it doesn’t compare to what real people think of your company. People are programmed to talk about their positive experiences with a brand’s product. This is due to the goodwill of many people who want others to be able to benefit from something really worthwhile. And if you have had a bad experience, you will certainly tell a family member or friend to warn them against wasting their time or money.


Referral marketing is a powerful tool that any business, even those in the gambling or sports betting industry, can use. From small firms with one person behind them to large corporations, almost all use referral marketing tools. And here are some tips on how you can incorporate this tool into your marketing strategy:


Ultimately, the success of your referral marketing efforts will depend on how balanced the incentive is to encourage referrals to attract potential customers and the latter to become converting clients.


Strengths of Referral Marketing

Key Advantages of Referral Marketing

So, with referral meaning, it’s time to find out if this tool is what you need. We have identified three main benefits of referral marketing that every business owner should be aware of:


It’ virtually creates an army of fans for your product similar to a football club’s fan base.


Why Referral Marketing Outperforms Social Media Ads and Paid Search?

Why Referral Marketing Is Beating Paid Search and Social Media Ads

Today, every business owner can make their life easier by taking advantage of paid advertising on Google or Facebook. Paid ads are quite an effective tool if you set up your advertising campaigns correctly. However, this is too expensive and not everyone can afford it. As for word of mouth, a method that has much in common with referral marketing, it’s been working since long before the development of the global web and even television. One of the key advantages of a referral program is that it offers your product in a much more natural way than when you advertise through a search engine or social media.


The great thing about paid search advertising is the targeting, i.e. the ability to segment your audience and select users to whom your ads will be shown. However, whether a new visitor turns into a paying user or not, you have to pay for the ad (for the click on the ad to be precise). Thus, paid ads are all about shooting with most bullets don’t hit the target. If your ads don’t convey a clear message about the distinct advantages of your brand or product, it may be a pointless waste of your budget.


As for referral marketing, it’s a way of building relationships when your own customers promote your business. With this strategy, you will no longer see your customers as the end goal. Instead, you’ll benefit from them even when they’ve already made a profit for your business. Referral marketing can trigger a chain reaction whereby you get a swarm of new customers.



So, referral marketing is a kind of mechanism for building stronger relationships with your customers in a very natural way. Although it is one of the oldest marketing tricks, it still works well and has not lost its relevance even with the development of social media. What’s more, you can run a social media referral program to take advantage of this strategy across all possible channels. Although modern marketing requires comprehensive measures, don’t neglect this tool and you will be convinced of its effectiveness by evaluating your referral earnings.