Referral ROI calculator for local business
Drag rewards into a ladder and watch a year of referral revenue add up. No signup needed.
Your next 12 months
Estimate only — assumptions
- Figures are a yearly run rate once the program is up and running, not a first-calendar-year total. A referral that arrives mid-year contributes less in that first year.
- A referred customer is worth $432 per year (average sale × purchases per month × 12) and stays a full year.
- Every advocate averages the same number of referrals.
- A milestone with several reward options counts as the average of their costs (the customer picks one).
- The welcome gift is given once per referred friend.
- No churn, seasonality, or redemption breakage is modeled.
Run this for real. Free account, and your ladder comes with you.
Three ladders to start from
Each one is figured at 3 friends per sharing customer. Load one and drag things around.
A café
$9 a visit, 4× a month, 20 customers sharing
- Welcome Free coffee ($4)
- 3 refs Free pastry box ($8)
- 6 refs Coffee for a month ($30)
Faded rewards aren't reached at 3 friends, so they cost nothing yet.
A salon
$85 a visit, 0.7× a month, 15 customers sharing
- Welcome $15 off a first visit ($15)
- 3 refs Product gift ($25)
- 6 refs Free blowout ($35)
Faded rewards aren't reached at 3 friends, so they cost nothing yet.
A gym
$60 a visit, 1× a month, 25 customers sharing
- Welcome Free trial week ($12)
- 3 refs A free month ($60)
How the math works
- One customer's year. Average sale × visits a month × 12. With your numbers that is $432.
- Revenue. Customers sharing × friends each × one customer's year.
- Cost. A welcome gift for every friend, plus each ladder reward a sharer reaches.
- The bars. Net return at 1, 2, 3… friends each. A ✦ marks where a reward unlocks, which is why the net dips there. Hover a bar for its figures.
What it assumes
- A yearly run rate for a program that's already going, not a first calendar year.
- Referred friends spend like your regulars and stay all year.
- Rewards count at what they cost you, not their price on the menu.
- Every friend counts as new, though some would have found you anyway.
- Net is before the cost of the goods you sell, so it isn't profit. Multiply by your margin for a stricter view.
Ready to run this for real?
LeadBounty gives every customer a personal link and QR code, runs the ladder and handles redemption at the counter. Your first campaign is free.
The builder above is ReferralWiz, our free campaign tool. For the method behind the math, read how to calculate what word-of-mouth is worth.