
Gusto Referral Promo Tooltip
Gusto uses a referral prompt to encourage virality through product-led growth. By embedding the message inside a tooltip rather than a disruptive modal, the product keeps users focused while still nudging them toward sharing the product with others. This is a lightweight and effective example of using growth loops inside the user experience. this is a strong example of embedded virality done right—timely, unobtrusive, and optimized for action. Let’s see how:

Smart design of a referral nudge
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Clear and compelling offer : The message give $200, get $200 is short, memorable, and balanced. the use of rhyme makes the value proposition easy to understand, while the even numbers feel fair and mutually beneficial.
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Visual cue for rewards: The gift icon next to the message reinforces the idea of a bonus or incentive. it gives the user a visual cue that this is a reward-based action, without needing more copy.
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Non-intrusive implementation: The referral prompt appears as a tooltip, not a modal. it doesn’t block the main workflow or force the user into a referral screen. the user can close the tooltip at any time. this makes the referral experience feel optional but encouraged, rather than interruptive.
Driving virality with minimal friction
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CTA that encourages immediate action: The link “invite your friends” gives users a clear next step. this helps trigger the virality loop at the moment when the user is already seeing product value—right after a successful contractor payment.
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Timing and placement aligned with value delivery: Placing the referral nudge after a payroll task increases the likelihood of conversion. the user just saw the product work and is now in a good mindset to share it.
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Hover-triggered expansion: The tooltip opens only when hovered or clicked, giving users full control over whether they engage with the prompt. this subtle behavior increases usability while maintaining visibility.
TLDR:
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The referral message is clear, fair, and easy to remember, increasing the chance of engagement
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By using a tooltip instead of a modal, gusto keeps the experience low-friction and user-friendly
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The placement, copy, and visual design work together to drive product-led growth without overwhelming the user
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