BlogBuild Your Own Referral System in Minutes - Cookie3 Playbook

Build Your Own Referral System in Minutes - Cookie3 Playbook

author photoauthor photo

Wojtek Mrówka

Head of Growth

6 min read

26 Jan '24

In the rapidly evolving world of Web3, referrals are the lifeblood of growth. But to truly harness their power, you need to go beyond surface-level metrics. Explore the significance of tracking on-chain data and discover how Cookie3 can help you create your referral program in minutes and maximize its impact!

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Referral programs are the cornerstone of marketing in both the Web2 and Web3 spaces, but these two realms significantly differ. To truly grasp their impact in the Web3 space, you require different tools tailored to track performance up to on-chain events, as relying solely on Web2 data offers only a fraction of the picture, missing the crucial ingredient of leveraging the blockchain's nature.

TLDR;

  • Build your own straightforward, no-code Web3 referral program in a matter of minutes.

  • Track the performance of your KOLs, influencers, ambassadors, or community members up to specific on-chain events that you define yourself.

  • Gain insights into the real conversion in the Web3 world and assess the quality of users from each source.

  • Reward your referrers based on the on-chain conversion rate, not just the number of clicks or impressions.

Navigating Referral Success in Minutes

Cookie3 recognizes this need and is committed to providing you with the right tools to optimize your upcoming referral campaigns. Our vision includes the launch of a robust platform where, in a matter of minutes, you will be able to set up a complete referral tracking system. In the meantime, we have prepared this playbook to guide you on how to create your semi-manual referral system using Cookie3's current version. It is a super simple, no-code process that even a marketing novice can follow and benefit from. But first, why exactly do you need it? 

Example: Which influencer is more effective in promoting DEX?


Influencer 1: 2,000 website visits vs Influencer 2: 10,000+ website visits

Even though there is a twofold difference, we still don't have a definitive answer.

Why?

Because we lack on-chain data.

Let's take another look at the same results, but with the addition of on-chain insights:

Influencer 1

Influencer 2

Website visits

2,000

10,000+

Transactions

500+ token swaps

50 token swaps

Total volume

$25,000+

$3,000

Avg. wallet value

$2,500+

<$50

Now, we have the complete picture. Even though Influencer 1 generated significantly less website traffic, the on-chain data reveals their true impact and the strength of the community they represent. This individual brought more on-chain transactions, a larger volume, and a higher quality of users, making it way more profitable. As a result, it is more beneficial to continue the collaboration with Influencer 1 in the future, based on their conversion performance, and adjust their rewards accordingly. 

This is how Cookie3 users leverage on-chain analytics to accurately assess influencer performance, and thus optimize their marketing spending.

Intrigued? Follow the recipe below and get started!

How to build your Referral System with Cookie3

Step 1: Connect Cookie3 Website Analytics

The first step is the integration of Cookie3 Website Analytics, which is a super simple no-code process. It should not take more than 5 minutes to complete. A detailed guide can be found in the platform under the "Add Website" section.

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If you are not yet a Cookie3 user, the starting point is to apply for access to our platform here.

Step 2: Set Up Conversion Events to Track

Ready to uncover the full potential of a Web3 referral system designed for Web3 natives? If so, let's define the conversion events you want to track—whether on-chain or off-chain. 

But first, what are they?

Conversion events are specific actions or behaviors that users take, in our context, on your platform or directly on-chain. From on-chain events, you can distinguish many different actions, such as NFT mints, token purchases, staking, and liquidity provision, to name just a few. Off-chain events can also provide valuable insights, as you can track newsletter signups, CTA button clicks, game downloads, and more.

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Setting up these events in your campaign is invaluable as they provide a clear roadmap to measure and optimize the effectiveness of your marketing efforts, ensuring you're focusing on what truly drives results.

Step 3: Create UTM Tracking

This step demonstrates the power of Cookie3's attribution system, achieved through full integration with external marketing stacks that enable the detection of external UTMs.

But actually, are UTMs?
UTMs are special tracking parameters added to your website links, allowing you to trace the source and performance of traffic that reaches your site. In our context, they are a valuable tool to monitor the effectiveness of influencers, KOLs, ambassadors, or community members.

To create your own referral list, simply build a UTM tracking stack, including campaign names (e.g., campaign_name), and generate unique links for ambassadors, KOLs, or community members you want to track the performance. You can do this manually or utilize our Google Excel sheet template.

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If you want to learn more about UTM generation, we have created a dedicated guide to make this process even easier for you. You can find it here.

Step 4: Distribute UTM Links

The next step is to distribute the generated UTM links to KOLs, ambassadors, or community members whom you want to track for performance. Currently, steps 3 and 4 are manual, but we are actively developing a dedicated module for easier link generation and distribution, set to launch at the end of Q1.

Step 5: Analyze Performance

Once everything is prepared and the links are distributed, the final step is to measure the performance of each representative. Cookie3 Website Analytics automatically detects external UTMs, so when someone shares these links and directs traffic to your website, you can track metrics such as the number of visitors, connected wallets, and conversions, right up to the final on-chain and off-chain events.

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In contrast to "classic" Web2 link tracking, you gain significant advantages by being able to verify which channel users generate the most on-chain value, monitor the quality of users in terms of wallet value, on-chain activity, and more.


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Even impressive website traffic could result in a very poor on-chain conversion if it is generated by low-quality users who do not engage in significant on-chain actions. On the other hand, a small amount of traffic generated by high-quality, active Web3 users could lead to significantly greater value for your project, which may not be immediately visible without delving into the on-chain data.

Leverage Data-Driven Growth

Building your referral system with Cookie3 is a breeze. In just a few minutes, you can establish a program to monitor the effectiveness of your marketing channels and evaluate the performance of your community representatives, ambassadors, and KOLs. 

Stay tuned for the full launch of Cookie3's referral tracking system, but in the meantime, kickstart your journey with this straightforward guide!

Important links:

1. Cookie3 App

2. UTM Link Builder by Cookie3

3. YouTube guide on UTMs in Web3 marketing