[Case Study] PayPal’s early user acquisition referral system

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Another business that’s proving to be one of the best growth hacking examples is PayPal. Ever thought of the fact that giving away money will help your organization grow? Well, it certainly worked wonders for Paypal.

Their growth hacking strategy was to use a referral program. They began to incentivize users who brought in more users by using PayPal’s referral program. As a result, PayPal’s business began to grow by 7% to 10% on a daily basis. The total cost of incentives was nearly $60 million.

Paypal grew mostly via word of mouth, SMS, blogs, and emails.