NaXum Reviews Referral Marketing Models

Posted by naxumadmin / December 20, 2022

How do you know which referral marketing model is best for you?

Referral Marketing is a term we use as an umbrella to cover the entire spectrum of affiliate marketing, social selling, influencer marketing, party-plan, and network marketing styles of customer acquisition programs.

Once you know you plan to deploy referral marketing for your culture, the next question becomes ‘which’ referral marketing vehicle is the best option for your company. 

There are 3 core questions we invite you to ask to pick the right model for your company’s culture: 

1. Whom do you want to promote your company?

Put on your thinking hat and imagine for a bit. Who is this person that is going to promote your company, and bring you customers? 

Are you attracting professional bloggers and influencers, who already have a large audience of your exact target customers and an ability to communicate to the audience? Then affiliate marketing may be a fit for you. 

Are you interested in creating a model where your brand’s fans can choose to promote you to earn income? You’ll need a training platform, compliant sharing tools, and a team to lead this tribe as they reach out to their personal connections. A two-tier affiliate program, party plan program, or network marketing concept could fit you. 

Where in an affiliate marketing company, you may traditionally provide a simple referral link, the expectations are not the same for all referral marketing models. When you’re exploring building a channel where your fans promote you, you begin to compete with the gig economy and must look into technology to create an experience that even unskilled participants have a path to win in. 

2. How do you want them to promote your company?

Are you wanting the affiliate to just send traffic to your website? Have you prepared to sell systems and a sales team to jump in and close sales on behalf of the affiliates?

Or are you wanting the fans of your product to complete the sales process themselves, following through with their prospects all the way until the sale is complete?

Do you want team members to be 100% focused on referring retail customers or are you open to incentivizing your promoters to refer their friends to promote as well?

As soon as you enter the space of referral marketing, your risk as a brand increases because you are no longer the one sending your company messaging to the marketplace. Independent people, whom you do not directly control, are sharing your story with others.

Companies today have deployed resources to build compliant selling systems that feel like a coach sitting next to the newest affiliate, suggesting what they do next. 

By creating a complaint selling system, your company provides a proven path for your affiliates to follow and model their own activities after, increasing the quality of the experience they deliver to the end customer. 

The insight data from the compliant selling systems also can act as a hub of leading indicators from the marketplace to guide your company’s content strategy as they continue to expand. 

3. What forces will virally support your success? 

What constraints will your business face that hold you back from spreading virally?

Do you have a fixed cost for acquiring new affiliates from your ad budget that is limiting your growth? Maybe you should consider a two-tier affiliate program to incentivize your current affiliates to invite their friends.

How much friction is in your onboarding process? Have you created systems to get your new affiliates into the marketplace referring you customers in the first 3-7 days? Or does your process take 30x days before your new affiliate is able to refer their first customer?

Have you put the tools in place to empower your affiliates to share a compliant offer that cuts through the noise of the marketplace and gets real attention?

Have you delivered on the promises you suggest will occur from customers buying your product and service?

The 3 power questions are the first steps to identifying the best referral marketing model for your company’s culture.

To explore these questions and more, book a discovery session with our team at NaXum and our team can share case studies of companies like yours and the models that have historically created the results you’re seeking. 

About Ben:
Ben Dixon loves referral marketing. His family found direct sales back in 2006 and had success using technology to create home-based businesses. Since 2010, Ben has focused on serving referral marketing, party plan, mlm, and direct sales companies across the globe with the technology they require to empower their passionate fans to virally grow their businesses.

To see episodes from the direct selling executives forum, visit the youtube channel.

To hear reviews on NaXum Technology, visit Capterra or Linkedin.

To request a tour of the NaXum platform, visit

To download a full copy of the 2022 Direct Selling Trends Report, download the report here.

Follow NaXum on LinkTree for more articles in this series on trends within direct selling.

BEN DIXON Chief Executive Officer

Ben Dixon is the CEO of the referral marketing technology company and works with companies spanning the globe in mlm, direct sales, and affiliate marketing. For more information on Gamification and using real-time notifications to engage your affiliates in the sales process create your FREE NaXum account.

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