You can reward successful referrals by your members by giving a discount or credit to a member's next payment, or a continuous discount on their membership payments.
Setting up referral rewards
You can enable referral rewards from the marketing settings.
The rewards for a successful referral can be applied in several ways:
- A fixed amount off the next scheduled payment or recurring membership payment
- A percentage off the next scheduled payment or recurring membership payment (up to 100%)
In addition, you can set whether referral rewards are applied automatically, or require a manual input. Turning off auto rewards allows you to make a case-by-case decision on the referral rewards. That can be useful if you provide rewards for referrals that go beyond payment discounts - such as training gear, private classes and so forth.
How referral rewards are applied
Rewards are applied to a member's account when their next scheduled payment is processed. At that time, rewards are applied through the following process:
- All referrals made by the member are pulled, and applied by referral date.
- A referral reward will only be applied if the referred member is still active.
- If a member made multiple referrals, they would be processed consecutively until all are processed or the total discount is equal or more than the scheduled payment.
- If the member's scheduled payment is discounted completely and they made additional referrals, those would be counted towards the next auto-pay payment.
- A member has a monthly payment of $100, and made 3 referrals worth $60 each
- On the payment date, before charging the member's payment card, the system pulls up his referrals.
- After the first referral is applied, the monthly payment would be $40. Then the second referral is applied, bringing the payment amount to $0 (any amount going over the payment total is discarded).
- The 3rd referral would be applied on the next scheduled payment. At that time, the member would be pay $40 (the $100 monthly amout, minus the $60 referral reward).
- If any of the referrals cancels their membership before the payment was processed, the referring member will not receive a discount for that referral.