Dropbox Referral Program Success Strategies

By only sending an invitation message to your friend and following simple steps, it would earn both of you bonuses. In the recent referral program by Dropbox, the company boosted its value up to ten billion dollars. Dropbox has been rated the best company when it comes to the referral program and has used its existing users to increase the number of users.


  • Company revenue increased up to 116 million in the year 2012, in 2013 it was expected to rise to 200 million. The company revenue in the year 2017 was $1.1 billion.
  •  In the year 2014, the company was able to raise 250 million, which led to rising in the valuation of the company to $10 billion. 
  •   The numbers of files which are saved within 24 hours in Dropbox are 1 billion.
  • Dropbox has 500 million users and plans to increase to 540 million.
  •  Dropbox has 500 employees who offer various services.
  •  In the past 15 months, the firm has witnessed about 3900% growth.

How were they so successful in 15 months?

  • You might have heard Dropbox supernatural growth which was witnessed within 15 months. The Dropbox program was the most successful referral marketing program in history. 
  • Between the year 2008 and 2010, the company was able to double their users base within the 3-month basis, which they saw their users send more than 2.8 Million invites by April 2010.
  •  Alongside the referral program, the company also ensured there is a quality improvement to ensure the various users get the value of their money. 
  •  Dropbox got a boost from PayPal refer-a-friend program which made the company to increase the number of invitations. 
  •  PayPal rewarded the referrals using cash, which made Dropbox make use of the product value while rewarding the users. 
  •  Referral sign up increased by 60% permanently, which is attributed to the success of the program. 
  •  At the beginning of the program, the number of referrals was 100,000 and rose to 4,000,000 users within 15 months. 

How Was Dropbox So Successful With Their Referral Program

The question has arisen as to what exactly worked for Dropbox to have such historic referral program which saw the company value rise and also the number of the users. Here is the breakdown:

  •  Dropbox did not rely on the traditional Ads and used other customer acquisition program, which was successful in the long-run.  In most cases, the traditional ads acquire the customer to be more expensive, thus lower the product value.
  •  Excellent partnerships with PayPal enabled the company to boost the referral program in a significant way. PayPal refer-a-friend program was substantial to the Dropbox program, which increased the company success.  

Dropbox Referral Program Strategies

PayPal partnership in the referral program was the essential strategy which the company adopted in making the referral program to be a success. While PayPal rewarded its user using cash, Dropbox went an extra mile to give some extra space to the referees and referrer. The company did this by encouraging its users to invite their friends to Dropbox and get 16 GB of free space.

The company would reward the customer starting from 0.5GB bonus of space, which made more users invite more friends. Dropbox also reduced to the cost of traditional Ads, which has been a problem for many referral programs. In that case, the company adopted other customer acquisition, which ensured the company increased the number of users.

Referrals program is better than AdWords since it will reach out to more users compared to the Ads. The acquisition models, which was adopted by the company, was suitable and made the company to have supernatural growth in the long run. Simple steps to follow, Dropbox introduced some simple steps which the users were to follow when it comes to signing up, which ensured a lot of people made invitation to their friends.

In other cases referral program has been characterized by tedious steps which makes many people to shy away from signing up. 

Lessons and Details About Dropbox Referral Program

Dropbox referral program has been a success with the company increasing the numbers of the users and also the valuation:

  • Make use of the on-boarding process for new users

 The reason why the Dropbox program was successful is that it used the onboarding process to invite more users. The company came up with six clear and distinct steps which one would use to invite a friend. This process is very crucial to the company, and there is a need to embrace it when having a referral program. 

  •  Have excellent communication skips

It’s essential for the company to ensure there is effective communication between the company and the clients in the market to facilitate the referrer to invite other people to sign up. Make sure you use a referral software where you have various ways in which you could invite someone.  For example, you could use email, Facebook, orTwitter.

  • Ensure users are rewarded instantly

Dropbox company ensured that the award for the referrals is done instantly to ensure the client remains loyal to the company. The company has a dashboard where the customer is rewarded regularly as soon as he or she makes a referral. Through regular rewarding, it would also help the company to also create good loyalty in the market.

  • Include a Terms and services with Your referral program

 It is worth noting that the program should have some clear terms and also benefits. It will help to create a disclaimer to the user before they subscribe. In addition to that, it will also encourage more users to sign up.

In addition to that, it is essential to note that Dropbox success in the referral program could be attributed to the company removing the complications which are likely to affect the process.

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