> For the complete documentation index, see [llms.txt](https://marketing-trailhead.gitbook.io/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://marketing-trailhead.gitbook.io/home/the-marketing-playbook/marketing-channels/referrals/referral-systems.md).

# 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.&#x20;

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:

{% embed url="<https://www.referralcandy.com/blog/47-referral-programs/>" %}


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