Greatest insight I got out of this: offering money as a referral commission might not be the most effective.
Here he offered additional storage which is (a) cheaper for dropbox to provide probably and (2) closer to what users actually want.
I'm anxious to try this out on UniversityTutor.com now. I have a referral program to try and get tutors to refer other tutors, and they get $3/month if their referred tutor upgrades. But not many tutors upgrade. I think I'll try out giving them free job requests for each referral instead, since the free tutor account is limited based on how many job requests they can get. Great insight on dropbox's part here...
I considered a $-based referral program, but it seems a bit shady to me in that it provides a motivation to refer that is independent of the quality of the product. A kind of moral hazard.
But if the referrer is a user themselves, and their reward is more use... then the motivation is aligned.
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Greatest insight I got out of this: offering money as a referral commission might not be the most effective.
Here he offered additional storage which is (a) cheaper for dropbox to provide probably and (2) closer to what users actually want.
I'm anxious to try this out on UniversityTutor.com now. I have a referral program to try and get tutors to refer other tutors, and they get $3/month if their referred tutor upgrades. But not many tutors upgrade. I think I'll try out giving them free job requests for each referral instead, since the free tutor account is limited based on how many job requests they can get. Great insight on dropbox's part here...
I considered a $-based referral program, but it seems a bit shady to me in that it provides a motivation to refer that is independent of the quality of the product. A kind of moral hazard.
But if the referrer is a user themselves, and their reward is more use... then the motivation is aligned.