The Power of Peer-to-Peer Selling

Ted Helfrich
Apr 19, 2021

In a world inundated with sponsored content and promotions on social media, there is still one Holy Grail for brands and marketers, an authentic peer recommendation.

Over 627,000 new businesses open each year, according to SBA estimates, and there are more product choices than ever before. When it comes time to make a purchase, we search out social proof and validation that we will be making the right choice and getting a product we love. Our peers are often our most trusted resource. Studies show that consumers are 92% more likely to trust their peers over advertising when it comes to making a purchase decision.

Peer-to-peer selling doesn’t only help help a brand bring in new customers, it also brings in better customers.

Referred Customers:

  • Have a 25% higher Life Time Value (LTV)
  • 15 points higher Net Promoter Score (NPS)
  • are 18% less likely to churn
  • and are 4-5x more likely to refer additional customers

What is an authentic peer recommendation?

For each product category, we as consumers likely have someone in our network that we would turn to for advice before a purchase. We all have a friend who is an expert in beauty products or a trained nutritionists. We turn to these people for recommendations because they have a level of expertise on the products they use and can give a trusted opinion on what to buy.

This expertise, however, doesn’t only apply to the products. In peer-to-peer selling, there is a second level of expertise that unlocks an even deeper sense of trust in the relationship. This person has a level of expertise on the consumer.  

Your friend who is a stylist can likely tell you which shade of blush is best for your skin because she knows your skin type, your style, and your preferences. The nutritionist can tell you which supplements are best for you because he knows your diet, how much you exercise, and what your health goals are.

Tapping into peer-to-peer sales enables brands to acquire customers based on trust.

1:1 and one to many selling baked into our product.