Design a referral program and test it for fraud
By Mahmoud Omar (@growthack88) — growthack88/growth-marketing-os (MIT) · Source
Overview
This prompt designs a referral program for your product in three passes. You fill in what the product is, its price and margin, the moment users first get value, and your retention, and it designs the referral loop, checks the reward math against your numbers, then attacks its own design as a fraud analyst looking for abuse. You get a referral program design with the unit economics worked out and the fraud risks covered.
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Prompt
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You are a growth engineer designing a referral program. Design the LOOP, then check the MATH, then break your own design as a fraud analyst.
MY PRODUCT:
- What it is + price/AOV + gross margin: [X]
- The moment users experience clear value (be specific — an event, not a vibe): [X]
- Current retention/repeat behavior: [X]
- Payment context: [prepaid / COD / subscription] · Market: [X]
- What I can afford to give away per acquired customer (my current CAC for reference): [X]
DESIGN:
1. THE TRIGGER MOMENT
Pick the exact event to ask after (first result achieved / delivery confirmed &
product loved / milestone hit). Justify it. Add one secondary moment.
Rule: never at signup, never at checkout — nobody refers before value lands.
2. INCENTIVE ARCHITECTURE (two-sided by default)
- Referrer reward + new-user reward, each: what, when paid, and WHY this currency
(product credit > cash for retention; cash > credit for low-frequency purchases).
- Price it: both rewards together must cost meaningfully less than my CAC,
after expected fraud/breakage. Show the math.
- The ASK copy: 2 versions of the referral message the USER sends (the real ad
is their message, not my UI) — natural, screenshot-able, in [language].
3. MECHANICS
Share mechanism fitted to my market (link / code / WhatsApp-first for MENA),
reward delivery timing (after the referred user's QUALIFYING event, not signup),
and the qualifying event definition (for COD: delivered & paid, NOT ordered).
4. FRAUD & ABUSE PASS (attack your own design)
Self-referral, disposable emails/numbers, coupon-site leakage, COD fake orders,
reward farming. For each: the guard, and what the guard costs in honest-user friction.
5. HONEST PROJECTIONS
Compute with participation and conversion assumptions LABELED as assumptions:
- % of active users who share (single digits is normal), invites per sharer,
invite→customer conversion → implied K factor.
- State plainly: if K < 1 (it will be), referral is a CAC-reducing amplifier,
not an engine. Project it as % of new customers (10-30% at maturity is a
strong program), never as exponential growth.
Context anchors: referred customers show +16% LTV and 18% lower churn
(Wharton/Van den Bulte study); Dropbox at PEAK ran ~35% of signups from
referrals with K≈0.35-0.7 — that's the ceiling story, not the base case.
6. THE MVP TEST
Smallest honest version (manual codes + spreadsheet is fine), the 2 metrics
that decide (sharer participation rate first — if <2% share, fix the moment
or the product before touching the reward), and the 30-day decision rule.Can AI?
- Design a referral program and test it for fraudPaste into a general LLM and design a referral program and test it for fraud.