How should I set the points earning rate?

Pick a rate that is easy to understand and sustainable. One point per unit of currency spent is the clearest, but the redemption value matters more than the number: if 100 points buys a free coffee on roughly 100 currency of spend, your reward is about a 1% rebate. Model the redemption cost as a percentage of revenue before committing.

Do I need membership tiers?

Tiers are optional but powerful. They give frequent customers a status to climb toward and a reason to consolidate spend with you. Keep them simple — two or three tiers with thresholds that a regular customer can realistically reach, each unlocking a perk that costs you little but feels meaningful.

Should loyalty points expire?

Many programs expire points after 12 months of account inactivity, which limits your liability and nudges dormant members back. Some regions restrict aggressive expiry of paid-for points, so expire only on inactivity rather than a hard clock, and state the rule plainly. Set expiry to never if you would rather maximise goodwill.

Are loyalty points a legal liability?

Issued points are a deferred liability on your books — you owe the reward when they redeem. That is why earning rate, redemption value, and expiry all need deliberate terms. Reserve the right to adjust the program with notice, and give members a redemption window if you ever wind it down.

Can I change the program after launch?

Yes, if your terms reserve that right and you give reasonable notice. The generated terms include clauses letting you change earning rates, rewards, and tiers, and to end the program with 30 days' notice during which members can still redeem. Never retroactively void points members have already earned without notice.

Loyalty Program Terms & Rules Builder

Turn a rewards idea into publishable program terms

A loyalty program is a promise with money attached: every point you issue is a reward you owe later. Running one without clear written rules invites disputes, surprise liabilities, and customers who feel cheated when a reward changes. This builder turns your program design — earning rate, tiers, redemption catalog, and expiry — into a clean, consistent terms-and-conditions document you can publish and stand behind.

How it works

You define the economics and the tool assembles them into standard program terms:

Earning   — X points per unit of currency spent
Tiers     — status levels with point thresholds and perks
Redemption — point cost mapped to each reward
Expiry    — points lapse after N months of inactivity (or never)
General   — eligibility, non-transferability, change & wind-down rights

The earning rate, tier thresholds, and redemption costs together define your effective rebate: if a customer earns 100 points on 100 of spend and redeems 100 points for a reward that costs you 1, you are running roughly a 1% loyalty discount. The tool writes the rules; you control the numbers, so model the redemption cost as a share of revenue before you publish.

Tips and example

Keep the point name and earning rate dead simple — one point per unit spent is the easiest mental model. Use two or three tiers with thresholds a regular customer can actually reach, and attach perks that feel generous but cost little, like early access or a birthday treat. Expire points on inactivity rather than a fixed date to stay member-friendly and reduce liability. Always keep the clauses that let you adjust the program with notice and wind it down with a redemption window: those are what protect you when the economics need to change.

Loyalty Program Terms & Rules Builder

Email me this result

Turn a rewards idea into publishable program terms

How it works

Tips and example