# Referral marketing

Encouraging people or businesses to recommend a product to others.

Encouraging people or businesses to recommend a product to others.

## An example

A customer shares an invitation and receives a credit when a friend becomes eligible.

## Why it matters

Define eligibility and prevent duplicate or abusive claims before treating every referral as a new customer.


## Related terms
- [Active user](https://jolts.xyz/resources/glossary/active-user)
- [Cohort](https://jolts.xyz/resources/glossary/cohort)
- [Lifetime value (LTV)](https://jolts.xyz/resources/glossary/lifetime-value)
- [Retention rate](https://jolts.xyz/resources/glossary/retention-rate)

## Next step

[Explore advertising](https://jolts.xyz/advertisers) or [monetize your AI app](https://jolts.xyz/publishers).