Are referrals worth it?

Are referrals really worth the time and effort they require? On one hand, they can bring in new customers and increase revenue, but on the other, they can be time-consuming and not always successful. Is there a way to balance the benefits and drawbacks of referrals? What strategies can businesses use to maximize the effectiveness of their referral programs? And how can they ensure that the rewards offered are enticing enough to motivate customers to participate?