Edgar Cervantes / Android Authority
US Mobile recently decided to end its partnership with Google Ads due to Google’s new payment policies, which now require all payments to be made using ACH. The carrier estimates that Google’s changes would cost them around $300k annually in savings from cashback rewards on credit cards and other payment methods. To help offset these costs, US Mobile is revamping its referral program. While the first two referrals earn $25 each, subsequent referrals increase in value, with a maximum of 10 referrals per year earning up to $225 each. This allows customers to earn a total of $1,500.
The landscape of the mobile industry is shifting as larger carriers acquire prepaid carriers, leaving fewer independent options. However, US Mobile remains independent and is looking to reduce its reliance on larger companies for advertising and distribution. The decision to part ways with Google Ads and explore alternative growth strategies, like customer referrals, seems to be paying off for US Mobile.
The new referral program aims to incentivize customers to refer friends and family by offering increasing rewards for each referral beyond the first two. Customers can earn $75 for the third referral, $100 for the fourth, and $225 for each referral thereafter. There is a limit of 10 referrals per year, and customers must pay taxes on earnings over $600, as the rewards are provided through prepaid MasterCards.
US Mobile’s founder and CEO, Ahmed Khattak, explained that the decision to end their partnership with Google Ads was due to Google’s requirement for ACH payments, which would eliminate their cashback rewards. Khattak emphasized the impact of Google’s changes on small businesses like US Mobile, and stated that Google’s inflexibility may result in lost revenue as other businesses face similar challenges. Despite the potential risks, US Mobile is confident in its decision to prioritize independence and alternative growth strategies.