What is Referral Code
In order to understand the referral cookie we must under stand referral code. A referral code is a unique combination of character which may be letters, numbers or both. This unique combination is used as an identifier. A cookie simply contains this referral code.
What is a Cookie?
Just for non tech savvy persons this not the usual cookie from sesame street. A cookie is a small files saved on the computer of user with some information as desired by the website. The cookies were designed to store information so whenever client visits the website next time relative information is already available through the cookies. This information can be users history, passwords or referral codes.
So a unique code is put inside the cookie and its expiry is set. The unique code lets the website know who was the referring users. The cookie expiry means the cookie will remain on the user pc until it expires.
Why Use Referral Cookies?
Referral codes are actually a type of program that track the origin of a referral. The reason a business uses a referral code is so they can track the original person behind a referral. This way they can see who is responsible for driving traffic to their website. This way the person spreading the word can be rewarded. The credit can be often monetary but doesn’t have to be. Most of the hosting websites offer fixed commission to their affiliates. For example
Lookouthost also use different referral links in articles through which the website earn referral commissions.
How does a referral cookies work?
Step 1. Assigning Uniquie Identifier
First the program/website or the business generates the unique code for a customer. Some businesses uses static codes but for a referral program to work properly a unique code per referring person is generated and embedded in the link. The link is then given to that user for sharing. This link is called the referral link.
Step 2. Share the Referral Code
Now the user can share his referral link to different peoples. It does not matter how the user sends the referral link as long as the end user opens up it on his browser and visits the website. The referral link can be shared using email, social media, message, text, whats app, Skype or any other mean through which the referral link is available to the end user for clicking.
Step 3. Referral Commission
Once the enduser orders using the referral link the website will credit the pre-decided incentive to the account of referring person. Some blogs are made on this model and earn through referral links of different website.
Check out Mayo Host referral program at mayohost/affiliate.php. This program offers 10% recurring commission on all of their plans. The program works on the same technology we explain above.