Referral marketing has its own vocabulary. This glossary explains the terms you will see on app pages and in referral terms and conditions, in plain language.
Referral basics
Referral program
A system where a business rewards existing users for bringing in new customers through a personal code or link.
Refer and earn
The common name in India for referral programs that pay you, usually in cash, cashback or points, when someone you invite joins and completes a qualifying step.
Referral code
A short personal code, like MNZE8179, that a new user enters while signing up so the app knows who referred them.
Referral link
A personal sign-up link that tracks the referral automatically, so the new user does not need to type a code.
Referrer
The person who shares the code or link and earns the reward.
Referee
The friend who joins using the code or link. Many apps give the referee a welcome bonus too.
Double-sided reward
A program where both the referrer and the referee get a reward.
Rewards and payouts
One-time commission
A fixed reward paid once for each successful referral. See one-time commission apps.
Recurring commission
A reward paid again whenever your referral makes a repeat transaction, such as a trade or purchase. See recurring commission apps.
Lifetime commission
A share of your referral’s activity for as long as they stay active on the app. See lifetime commission apps.
Brokerage sharing
A demat or trading app’s referral model that pays you a percentage of the brokerage your referrals generate.
Cashback
Money returned to you after a purchase or transaction, often used as a referral reward by payment and shopping apps.
Points or coins
In-app rewards that can be redeemed for cash, vouchers or products once you reach a minimum balance.
Payout threshold
The minimum balance an app requires before you can withdraw your referral earnings.
Tracking and rules
Qualifying action
The step your friend must complete for the referral to count, such as a first UPI payment, a first order, a funded account or a disbursed loan.
Referral cap
The maximum number of referrals, or the maximum reward, an app will pay in a period.
KYC
Know Your Customer verification with ID documents. Financial apps require it by law, and some apps ask for it before you can withdraw rewards.
Self-referral
Referring yourself with a second account. Almost every app bans it and may cancel rewards or suspend accounts.
Referral fraud
Fake sign-ups or misuse of a referral program, such as duplicate accounts. It can lead to forfeited rewards and account bans.
Affiliate program
A partnership where publishers and creators promote a product to a wider audience for a commission, usually tracked in an affiliate dashboard.