Designing Referral Systems

Referral systems are of two types:

1. Forward-only reward: If a prospect referred by your customer takes a desired action

   (an actual sale or signing for a trial), then only the prospect gets a reward for the transaction. The reward for the customer could be intangible - "positive feeling of doing good".

2. Both-way reward: If a prospect referred by your client takes a desired action (an actual sale or signing for a trial), then your customer as well as the propect - both get rewarded for the transaction.

Rewards in case of referrals could be in multiple forms - digital or physical or even intangible such as social recognition:

• Discount on the normal price.

• More of a product at the same price - subscription period, more storage space, premium features unlocked, etc.

• Free complimentary product along with the core product at the same price.

• Digital vouchers along with the main product at the same price.

Reference material:

How to Build a Referral Program That Works in 2023 (With 80+ Examples)ReferralCandy