Refer A Friend has launched an app that pays users for referring customers to local service businesses, with fees charged to professionals only after a paid job completes.

The company says the app targets common word-of-mouth recommendations for services such as plumbing, electrical work, hair styling and dog walking. It positions the platform as a digital marketplace where individuals build a list of providers they trust and share that list with their network.

How it works

Users join for free and create what the company calls a personal referral marketplace. Users invite service professionals to join their marketplace and accept leads. Users then share their lists with friends, neighbours and associates.

The company says users can earn up to 10% commission when a professional completes a job that came from one of their referrals. The company says professionals pay referral fees of up to 20% after they complete a job and receive payment.

The launch comes as small businesses continue to weigh the cost of advertising and lead generation against uncertain returns. The company points to the large number of small business owners in the US and argues that many spend significant sums to secure new clients.

Refer A Friend says it focuses on small businesses that depend on local demand and repeat custom. The app centres on consumer trust and familiarity. It frames referrals as a way to connect people with providers who already have social proof within a community.

Founder background

Founder Ryan Zeleznak has a background in business, real estate and sales. The company says he faced difficulties finding trusted tradespeople and contractors when preparing properties for sale and handling repairs across ice cream shops.

Zeleznak said those experiences shaped the idea for a product that formalises referral networks and tracks introductions in a structured way. He says the app turns existing personal recommendations into a marketplace model where referrals become attributable.

“For any company, word-of-mouth advertising is invaluable, yet it’s often difficult for entrepreneurs to tap into this resource effectively,” said Ryan Zeleznak, Founder, Refer A Friend App.

“Our platform gives people the tools to create their own marketplace, invite service professionals and earn money for making those connections,” said Zeleznak.

Network effects

The company says it aims for broad participation, including stay-at-home parents, solo entrepreneurs and people seeking additional income. It also highlights a feature called the “My Friends” tab. The company says it allows friends to connect and view each other’s referral marketplaces.

That design encourages users to browse curated lists beyond their own contacts. It also increases exposure for service providers who join multiple marketplaces across connected networks.

The company presents the model as performance-based from the business side. It says businesses do not pay until after they complete a job and receive payment. The company also emphasises tracking, with the platform presenting lead activity and outcomes across referrals.

Marketing spend

Refer A Friend frames the app as an alternative to paid ads and lead platforms. It says small businesses often face thin margins and rising acquisition costs. It positions referrals as a lower-cost route to new customers.

Christian Jewkes, Partner and CMO, said the company built the platform around existing consumer behaviour rather than advertising auctions.

“The platform is designed so people can leverage their personal networks and earn some extra cash,” said Christian Jewkes, Partner and CMO, Refer A Friend App.

“Small businesses operate on thin margins, and advertising to attract new customers is costly. We built Refer a Friend to empower small businesses to leverage the most powerful, cost-effective tool at their disposal – word-of-mouth referrals,” said Jewkes.

Refer A Friend says it expects users to invite professionals they already trust. It also expects professionals to accept leads that come from known community members. The company says the app’s structure makes referrals easier to share and easier to attribute.

The company is now seeking uptake among local service providers and consumers who already share recommendations in person and on community social platforms.