What's the process to create referral discount codes?

Creating Referral Discount Codes

Referral programs convert at higher rates than most other acquisition channels because referred customers arrive with built-in trust - a friend vouched for the brand. Discount codes are the standard incentive mechanism, but the structure matters: you need to reward the referrer, attract the referee, and prevent abuse.

Referral Program Structures

Manual vs. App-Based Setup

Manual (small scale): Create a discount code per customer (using their name or order number), email it to them, and track redemptions manually in Shopify's discount reports. Referrer reward is issued manually when a redemption is detected. App-based (scalable): ReferralCandy, Refersion, or Loyalty Lion automate the entire flow - unique link per customer, tracking, reward issuance, and fraud prevention. Cost: $50-200/month depending on volume.

Fraud Prevention Essentials

Set the referee discount to apply only to new customer accounts (not existing accounts with a new code). Require a minimum purchase amount for the referral reward to trigger. Use single-use codes rather than shareable codes where possible to prevent social media distribution that bypasses the referral relationship.