060 - Why Many Referral Programs Fail and How to Stop Bounty Hunters

<p><span style="font-weight: 400;">Unfortunately, the vast majority of referral programs established by Fintech and crypto start ups are poorly structured. This leaves them open to being exploited by bounty hunters who are just looking for rewards and don’t have any real interest in the services being offered. In this episode I’ll share with you some advice for how to better structure your programs in order to prevent this pervasive issue! </span></p> <p><span style="font-weight: 400;">If you found value in this episode, I would really appreciate if you could leave a review! My mission is to help and support as many FinTech startups as possible, and when you leave a positive review, more people can find this podcast and help their companies!</span> <span style= "font-weight: 400;">If you are on Apple, just </span><a href= "https://podcasts.apple.com/ch/podcast/compliance-that-makes-sense/id1535160531"><strong>click here to review</strong></a><span style="font-weight: 400;">, select “Ratings and Reviews” and “Write a Review” and tell me what your favorite part of the podcast is. </span></p> <p> </p> <p><strong>Today's episode:</strong></p> <p><span style="font-weight: 400;">[00:41] Why many Fintech and crypto startups offer referral programs. </span></p> <p><span style="font-weight: 400;">[01:31] The problem with the vast majority of referral programs. </span></p> <p><span style="font-weight: 400;">[02:21] What bounty hunters do in this context. </span></p> <p><span style="font-weight: 400;">[03:30] Compliance problems that arise when a referral program is badly structured.</span></p> <p><span style="font-weight: 400;">[05:32] Why you should never allocate rewards upfront. </span></p> <p><span style="font-weight: 400;">[08:10] Strict terms of service are essential for a referral program.  </span></p> <p><span style="font-weight: 400;">[10:12] Example of the type of language you could use in your terms of service. </span></p> <p><span style="font-weight: 400;">[11:49] The difference between a referral program and a