When we started Zerodha, we didn’t have the money to advertise, not that it would’ve worked. So that only way we could grow was through word of mouth and customer referrals, and the only way that was possible was to offer products and services that customers would talk about.

We started our referral program when we started in 2010, and since then, the referral incentives have changed numerous times because of regulations. A classic example is the dip in 2018/19. That was because a regulatory change disallowed us from paying a referral incentive.

Despite all the changes in the incentives, a significant number of accounts come from referrals. Today, we don’t offer any incentives, and despite that, referrals have more or less stayed flat.

Also, this image doesn’t capture the significant chunk of indirect referrals, and customer love is a real superpower for us.

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