# 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:

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