Incentive Design

Referral Incentive Design Skill

When to Use

• Launching new referral or affiliate programs.
• Revisiting incentive structures after performance reviews.
• Adapting rewards for new personas, products, or regions.

Framework

1. Objective Alignment – tie incentives to desired behavior (lead quality, revenue, product adoption).
2. Structure Options – choose between cash, credits, swag, tiered multipliers, or charitable donations.
3. Economics – model CAC/LTV impact, cap payouts, and define clawback rules.
4. Compliance – account for tax reporting, regional regulations, and contractual clauses.
5. Experimentation – define hypotheses, guardrails, and measurement cadence.

Templates

• Incentive matrix (persona → action → reward → cap → notes).
• Budget planner comparing reward scenarios vs target outcomes.
• A/B test brief for incentive experiments.

Tips

• Keep tiers simple; too many options create friction.
• Pair with finance/legal early to avoid rework.
• Document changes with effective dates for auditability.