Example: Recurring Rewards Encourage Continuous Sharing
In this typical example, a referrer is rewarded 50% for each referral up to a $100 maximum reward cap with a $5 signup bonus. The referee initially purchases a $10 subscription for herself, and then upgrades her team in the following month. The reward is paid to the referrer over a 6 month period until the referrer reaches a maximum cap of $100 for this referral. In the meantime, these regular rewards encourage further sharing.
It’s important to note that the new user also receives an exclusive 50% discount from the referrer when purchasing for the first 6 months. Our research shows that symmetric rewards (i.e., the referrer and the referred have incentives of similar values) work best because referrers invest their social capital when recommending a product; having similar incentives makes the referral look fair to both parties involved.
Campaign Settings
All campaigns must have one or more rules to reward referrers for the referrals they made. Campaign settings can be configured in the Cello portal in the Setup section.
Rewards are typically based on a percentage of the transaction amount generated when new customers make a payment up to a maximum amount per referral. Additional rewards can also be set on other key events such as signups and purchases to help encourage more engagement and sharing.
| Section | Rule | Description |
|---|---|---|
| Referrer Reward | Percentage of revenue | Percentage of attributed new revenue that will be paid as a reward |
| Referrer Reward | Maximum reward (per referrer) | The maximum reward that can be earned per referral |
| Referrer Reward | Bonus rewards | Additional rewards that can be set for signups or purchases to encourage more sharing. Bonus rewards are also recommended for products with longer free to paid conversion times. |
| New User Reward | Percent Discount and Months | The new user discount to encourage additional sharing. |
Cello uses the new user reward settings to display to the new user on your signup screens. You will need to take additional steps to implement the discount at the point of purchase. See the docs here for more information.