Why reward both the referrer and the referee?

A 'give-get' structure — the referrer earns credit and the new friend gets a discount — outperforms one-sided rewards because it gives the referrer a generous, friendly reason to share rather than a self-interested one. The referee discount also lowers the barrier to that crucial first purchase.

What should the qualifying event be?

Tie the reward to real value, not just a signup. A reward that pays out only when the referred friend completes a first paid order above a minimum protects you from being gamed by empty accounts. State a specific, verifiable trigger so there is no ambiguity about when a referral counts.

Why wait before paying the referral reward?

A payout window — commonly 14 days — lets the qualifying purchase clear the return and refund period before you issue the reward. Paying instantly invites a buy-refer-refund cycle. The terms also let you reverse rewards if the underlying transaction is later cancelled or found fraudulent.

Do I need an annual referral cap?

A per-referrer annual cap limits your exposure to a single user industrialising the program and signals that it is meant for genuine word-of-mouth, not arbitrage. Set it generously enough that real advocates never hit it, but low enough to stop abuse. Set the cap to zero if you want no limit.

How do I prevent referral fraud?

The terms ban self-referrals, accounts controlled by the same person, spam, brand-term paid ads, and coupon-site posting, and they reserve your sole right to judge eligibility and reverse rewards on suspected abuse. Combine these clauses with device, payment, and IP checks on your side for real enforcement.

Referral Program Terms Builder

A referral program is only as safe as its terms

Referral programs are one of the cheapest acquisition channels — but without clear terms they are also one of the easiest to game. Fake accounts, self-referrals, and buy-refer-refund loops can quietly drain your budget. This builder writes the terms that make a referral program defensible: a two-sided reward, a real qualifying event, a payout window, an annual cap, and explicit abuse-prevention clauses.

How it works

You define the reward economics and the rules; the tool assembles them into standard, publishable terms:

Referrer reward — what the sharer earns
Referee reward  — what the new friend gets (give-get)
Qualifying event — the verifiable trigger that makes a referral count
Payout window   — delay so the purchase clears refunds first
Annual cap      — max successful referrals per person per year
Abuse clauses   — self-referral ban, sole-discretion eligibility, reversal rights

The qualifying event is the load-bearing clause: tying the reward to a completed first paid purchase above a threshold — rather than a bare signup — is what stops the program being farmed. The payout window ensures that purchase has cleared the refund period before any reward is issued.

Tips and example

Use a give-get reward — say £10 credit to the referrer and £10 off the friend’s first order — so sharing feels generous, not self-serving. Make the qualifying event specific and verifiable: “completes a first paid order of £25 or more” leaves no room for argument. Keep a 14-day payout window so refunds clear before you pay, and set a sensible annual cap that real advocates never reach but arbitrageurs do. Keep every abuse clause: sole-discretion eligibility and the right to reverse rewards on suspected fraud are what let you act when someone inevitably tries to game it.

Referral Program Terms Builder

Email me this result

A referral program is only as safe as its terms

How it works

Tips and example