Why it might work
A reward for the recipient makes an invitation easier to send: the sender is offering something useful as well as asking for a signup. Rewarding both people after a meaningful action can align distribution with activation. Incentives still need to cost less than the value of a qualified customer.
Pattern anatomy
- Trigger
- Existing user
- Incentive
- Give both people a reason to make the introduction.
- Mechanism
- An existing customer shares an invitation; a qualifying action unlocks a reward for both participants.
- Business outcome
- Acquisition and Virality
- Desired user action
- Both rewarded
- Psychological principle
- Reciprocity and reduced social cost of recommending.
When it works best
- Products with low marginal reward costs
- Customers who already recommend the product
What to watch for
- Referral fraud
- Reward-seeking users
- Unsustainable incentive costs
Use the linked company examples to investigate the implementation and constraints. Similar mechanics do not imply similar results.
