You can reward successful referrals by your members by giving a discount or credit for the next membership payment the referring member is scheduled to pay.
Setting up referral rewards
You can enable referral rewards from the marketing settings.
The rewards for a successful referral can be applied in two ways:
- A fixed amount off the next scheduled payment
- A percentage off the next scheduled 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 cancells their membership before the payment was processed, the referring member will not receive a discount for that referral.