Most referral programs suck, but it doesn't have to be this way.

No one will buy something just because you bought it. "what's in it for them?"

The other day, I considered referring a few people to Acorn, an investing app that takes the coins you would get back from purchase and puts them into a mutual fund account full of stocks, cryptocurrency, and bonds. The App is brilliant for those aspiring to invest yet unsure where to start.

But brands like Acorn grow to a decent size by sharing the App's potential only to reach a plateau and then have the little guys/gals (us) come in to fill in the gaps that their marketing and advertising alone could not but should, and this is where most referral programs go wrong.

Referral programs don't "need" you.

Those who know about the App have already invested in it, so you can't refer them. Then there are beginners who "should" use the App, yet nothing is ever "beginner" friendly enough. And as for experienced investors, you can never tell them anything unless your name is Warren Buffet, and even then, others will question your ideas.

But the suckiness behind most referral programs also represents a much bigger problem—a lack of belief in affiliate marketing and a toxic attitude towards side hustling. And in this article, we will dig deep to explain the reasons behind the failure of referral programs, help you understand most people's disbelief in affiliate programs, and avoid the many mistakes that burn out most side hustlers' attempts towards obtaining multiple income streams.

For example,

They offer Disney dollars instead of real money.

Acorn is "giving" out a $600 bonus for anyone who can refer three people to the platform. The only catch is that the $600 would not go directly to you but to your investment account. There is nothing wrong with that other than the fact that grownups are telling other grownups what to do with their hard-earned money.

But if they cannot pay you $600 in cash, how can they do it by adding funds to your investment account? Through partnerships with various retail brands. One of the most significant ways Acorn users can increase the amount of money invested is to spend more simply. Getting users to spend more money from the retail brands also adds additional investment dollars to their accounts.

And many can even argue that Acorn as a platform does not fully support investing but is just another clever idea from marketers to get you to spend your hard-earned money. At the same time, it's not like anyone is forcing you to buy things, Acorn could be used to get the ball rolling towards investing simply, and you can also add more money to the account once becoming more familiar and confident with the platform through using some of its more advanced features.

It affects side hustle culture.

Although the amount of money made from any side hustle can be unpredictable sometimes, that should be less of a case once more established. But with Acorns referral program, the amount you make per referral makes this less possible. But affiliate marketing programs can also change their rates.

Things referral programs to consider:

1. Give the people adding customers to your network a choice between cash and investing their money into the platform.

2. Stop changing the referral reward amount. Even though I said, "this week, Acorn is handing out $600 for three referrals", Acorn typically varies the amount one can earn from referrals. Like seriously, be more transparent about how much a customer is worth.

3. Start a brand ambassador program and keep the rates per customer consistent. Educate others on the target market the company is aiming for to expand the business. If you want consumers to do proper marketing and sales for your brand, referral programs need to be willing to give out some market research information.

Most people buy 100% off emotion.

And Acorn is not the only referral program that could improve. Remember when Robin hood stopped many people from investing in Gamestop before blowing up? And how by doing so, piss off so many people that almost no one wanted anything to do with the platform? Well, at this same time, I was first introduced to robin hood. An old friend of mine saw an opportunity that most refused to see. Free stock.

And it ranges from shares worth a few dollars to about a few hundred dollars per share. Still, most of my friends, family, and anyone else I encountered did not care! Part of me understands why far as ethics and morals go. But the other part logically knew that getting as many referrals as possible and helping others do the same could get free stock, cash out and then invest the money on another platform.

Sound logic, yet nobody cares about what you think; customers want to know how you will make them feel by buying your product. It was apparent Robin Hood platform was making a move to improve its public relations, and at the same time, it was their lousy PR that allowed me to discover them in the first place. Guess there is no such thing as "good" or "bad" PR.

It affects side hustle culture:

We often start a side hustle simply because it has "potential." But the truth is that your business can never be all things to all people. Eventually, you will have to practice discernment. Else you get shiny object syndrome. Many well-off individuals have multiple income streams, but those streams 9-times-out-of-10 came from the skills, resources, and connections built from growing the first income stream. Let leverage help you expand instead of spreading yourself thin and reacting to the latest trend.

Things referral programs to consider:

1. Instead of covering up chaos, make narratives more about your customers and less about the company if you want to succeed via word of mouth. You can do this via content marketing.
2. Study your customer demographics and behavior before deciding to piss them off. People buy for their reasons, not yours. Stop trying to be a one size fits all brand. Never rest on your laurels.

Their features probably suck.

Many referral programs are scams simply because the products are unknown, terrible, or too expensive. The icky feeling makes me think about multi-level marketing companies under government investigation for shady practices. No one wants to be part of a company that only makes money from recruiting other people, not the product itself.

For example, there's I-Markets Live. A multi-level marketing company disguised as an educational platform where people can learn how to trade currency, aka forex. Initially, hustlers convince you that you will learn how to change from some of the best to do it. You might see their Instagram accounts and immediately become inspired. Part of you thinks (knows) it's B.S, but looking at your bank account, you can't help but take the chance.

And then, when you do take that chance, you find out that the information you learned about forex was rather basic, and you can find them anywhere online. The "expert" then invites you to their group and calls for you to become more inspired, and then they charge you with the monthly bill to continue. But wait! "You can continue to join our group for free if you refer 2,3,4 people to our program, refer more, and you just might get paid. Hardly anyone in the group does any actual trading.

Things for referral programs to consider:

1. Instead of charging people to join your network, why don't you have your experts put their money where their mouth is and charge a small commission based on how much money you help new investors make? Just a thought.
2. Selling a lifestyle makes you come off as a scammer. Dreams sell nine times out of 10; if it is too good to be true, it likely is. Sell the process instead, and your retention rates will improve.

Its effects on side hustle culture:

Many so-called entrepreneurs celebrate their success of being able to raise money from investors. In reality, needing investors means you need money to survive or expand your business and could not bootstrap. The same thing happens with side hustle culture as many end up celebrating vanity metrics such as likes and other attention from their business from family, friends, and peers.

And I get it; part of it needs that validation that you are on the right path towards success, but clingy to such approval, especially in a non-supportive environment, might be the reason many side hustlers either don't work hard enough or spread themselves thin trying to prove their value to everyone.

A better alternative.

There is no such thing as a perfect business endeavor. Even the best ones come with flaws. However, you should never choose one that makes it clear they do not respect you as a business partner.

The best referral program I've discovered thus far is yours truly, the Medium referral program. And for a few reasons:

• They don't pay you solely based on referral but lifetime value. For every person you convince to pay $5/mo, you receive $2.27/mo of passive income as long as they remain members.
• You ultimately control the number of new members you refer to because your writing is the primary product. And your taste in other people's writing is a close second that comes with additional benefits of building a community and gaining further insight into how to best work the platform.
• There is no cap on how many people you can refer. Refer 1,000 people, and you can make $2,270/mo in passive income. It sounds unrealistic, but Medium is a hybrid of a blog and social media network, meaning you can easily leverage your content to create additional opportunities to expand your brand. Such as taking your message to the next level via speaking gigs and asking people to follow you on Medium.

Overall, the best business opportunities are the ones where you can exercise the most control. A platform with a great product that consistently educates its audience and hands you cold hard cash for your hard work. You do not have to choose Medium, but you should look for other opportunities like it.