Referral Bonus vs. Sign-Up Bonus: What's the Difference?

In the world of rewards and churning, there are two main types of bonuses you need to know: Sign-Up Bonuses (SUBs) and Referral Bonuses.

While they often go hand-in-hand, they are distinct rewards with different rules. Understanding the difference is key to maximizing your earnings.

1. The Sign-Up Bonus (SUB)

Who gets it? The person applying for the new account (the "Applicant").
Trigger: Usually requires spending a certain amount of money within a specific timeframe (e.g., "Spend $3,000 in the first 3 months").
Value: Typically the largest bonus available. Can range from $200 to $1,500+ in value.
Example: "Earn 60,000 points after you spend $4,000 on purchases in the first 3 months."

Who gets it? The person sharing the link (the "Referrer").
Trigger: Requires the Applicant to be approved for the account. Sometimes requires the Applicant to make a purchase.
Value: Smaller than the SUB, but still significant. Usually $50 - $200 per person referred.
Example: "Earn 10,000 points for each friend who gets approved for this card."

YES! This is the magic of the system.

When Player A refers Player B:

Player A gets the Referral Bonus (because Player B was approved).
Player B gets the Sign-Up Bonus (after meeting the spending requirement).

This "Double Dip" is why referral links are so powerful. It extracts the maximum amount of money from the bank's marketing budget.

Some apps allow even more stacking.

Shopping Portals: Apps like Rakuten give you a Sign-Up Bonus ($30) AND a Referral Bonus ($30) just for spending $30. It's practically free money.
Bank Accounts: Some banks allow you to stack a referral code on top of a public promo code during sign-up.

If you are joining a new service, look for a Sign-Up Bonus (often accessed via a referral link).
If you are already a member, look for your Referral Link to share with others.

By playing both sides of the equation, you can earn rewards coming and going.