Referral Marketing Law and Legal Definition

Referral marketing is a method of internet marketing that relies on gaining new customers by referrals, usually through word of mouth. Word of mouth is generally spontaneous and is achieved by businesses without any form of structured strategy. Referral marketing is done by encouraging, informing, promoting and rewarding customers and contacts to think and talk as much as possible about their supplier, their company, product and service and the value and benefit the supplier brings to them and people they know. Referral marketing shares referrals, ideas, information and support. Online referral marketing, using digital marketing as a platform, is the internet based successor to traditional referral marketing.