2 builders who never spoke to each other

Ship a flat reward first and prove the mechanic

The first version of a referral scheme should be deliberately unambitious: one simple reward on both sides, linked from the navigation and the footer, with almost no promotion behind it. It exists to show the mechanic works before anyone invests in it. Credit at signup plus more credit for every referral who goes on to succeed makes the free start itself the pitch.

The method

1. 01

   Ship version one as a flat, simple reward with almost no promotion, just to prove the mechanic works before you invest in it.

2. 02

   Hand out account credit at signup and more credit for every referral who launches and makes a first sale, so the free start is the pitch.

What it returned

• $25

  Airbnb's first version paid a $25 travel credit to both sides for a new guest and a $75 credit for bringing in a new host, was linked only from the navigation and footer, and existed on web only.

• $500

  Proposed as $500 of credit up front plus $250 for each referred store that makes a sale.

Sources

• Somebody Build This #1 - Shopify for the next generation of creatorsChris Frantz · chrisfrantz.com · Pricing · 2021-03-16
• Building a referrals program - by Lenny RachitskyLenny Rachitsky · lennysnewsletter.com · 2020-03-03