Referral programs typically involve a few key steps: 1. Invitation: Existing customers are invited to join the referral program. 2. Referral: Customers share a unique referral link or code with their network. 3. Action: The referred friend takes a specific action (e.g., making a purchase). 4. Reward: Both the referrer and the new customer receive rewards, which could be discounts, cash bonuses, or other incentives.