Introduction
Implementing a comprehensive Referral Program is essential for driving customer acquisition and engagement. A well-crafted referral program can leverage your existing customers to bring in new business while rewarding loyalty. This guide provides you with a complete terms of service template that covers all aspects of modern referral programs, including fraud prevention, customization options, and reward fulfillment requirements.
How to add a Terms of Service page to your store
From your Shopify admin, go to Online Store > Pages.
Click Add page.
Set the Title of your page (e.g. 'Referral Terms of Service').
Under Content, add your terms of service. You can use our comprehensive example below or customize any of the content to include your own rules and branding.
Edit your page preferences, such as SEO, template, and make sure to save changes.
Link your terms: You can link to this terms page from your referral signup forms, friend claim pages, and reward redemption pages to ensure customers understand the program rules.
Comprehensive Referral Program Terms of Service
Our Referral Program Terms of Service
1. Acceptance of Terms
By participating in our Referral Program (the "Program"), you are agreeing to abide by these Terms of Service ("Terms") and our Privacy Policy. If you do not agree to these Terms or the Privacy Policy, please refrain from participating in the Program.
2. Eligibility
To be eligible for the Program, you must be at least 18 years old and have an active account with our store. You may not participate in the Program where doing so would be prohibited by any applicable law or regulations.
3. How the Program Works
You will receive a unique referral link or code ("Referral Code") to share with others by visiting our referrals page. Here's how the complete process works:
Step 1: Advocate Signup - You sign up for our referral program and receive your unique referral link.
Step 2: Share Your Link - You can share your referral link via email, social media, or direct messaging. The link can be customized with your personal message.
Step 3: Friend Claims Discount - When someone clicks your link, they can claim their discount by entering their email address. This creates a pending referral.
Step 4: Friend Makes Purchase - Your friend uses their discount code to make a qualifying purchase. The referral status becomes completed once the order is fulfilled.
Step 5: You Receive Rewards - After your friend's order is marked as fulfilled, you receive your referral reward as detailed on our Program page.
4. No Self-Referral
You are not eligible for rewards by referring yourself. If you set up multiple accounts in order to receive referral benefits, all of your accounts may be terminated, and you will be disqualified from future participation in the Program.
5. Limitations
Referrals are limited to one per household. If multiple members of the same household participate in the Program, only the first person to participate will be eligible for referral rewards.
Rewards are only for bringing new customers to the shop. If you try referring someone who has already made a purchase, the system won’t count it.
You’ll receive your reward only after your friend’s order has been marked as fulfilled
. This ensures the referred purchase is legitimate.
Cannot “share the reward” on popular coupon sites. Rewards are only specified and limited to the Friend who claimed the reward.
6. Fraud Prevention and Security
To maintain program integrity and prevent abuse, we employ comprehensive fraud prevention measures:
IP Address Monitoring: We monitor IP addresses to prevent multiple referrals from the same location or household. Referrals from similar IP addresses may be blocked to ensure fairness.
Email Validation: Email addresses are validated to prevent fake or duplicate accounts. Similar email patterns may trigger additional verification requirements.
Account Verification: We verify that referred customers are genuine new customers and not existing account holders attempting to circumvent program rules.
Automated Blocking: Our system automatically blocks referrals that show signs of fraudulent activity, including but not limited to: similar signup IP addresses, existing customer attempts, advocate exclusions, and suspicious order patterns.
7. Disqualification and Blocking
We reserve the right to disqualify any user from the Program at our discretion. Referrals may be automatically blocked or marked as ineligible for the following reasons:
• Similar Email Addresses: When referred customers use email addresses too similar to existing customers
• IP Address Restrictions: Multiple referrals from the same household or IP address
• Existing Customer Attempts: When someone who already has an account tries to claim a referral discount
• Advocate Exclusions: When the referring customer has been excluded from loyalty programs
• Suspicious Activity: Any behavior that suggests fraud, abuse, or violation of these terms
Additional reasons for disqualification include failure to comply with these Terms or any harmful conduct towards our brand, staff, or other customers.
8. Referral Status Meanings
Your referrals will have different statuses throughout their lifecycle:
• Unclaimed: The referral link has been created but the friend hasn't claimed their discount yet
• Pending: The friend has claimed their discount but hasn't completed a qualifying purchase yet
• Completed: The friend has made a qualifying purchase and the order has been fulfilled - you'll receive your reward
• Blocked: The referral has been blocked due to fraud prevention measures or policy violations
• Ineligible: The referral doesn't meet program requirements (e.g., minimum purchase amount not met)
9. Customization and Display Options
Our referral program offers extensive customization options to match your brand:
Page Customization: Referral pages can be customized with your brand colors, fonts, messaging, and imagery. You can customize titles, descriptions, button text, and disclaimer text for all referral pages.
Email Integration: Referral sharing can be integrated with email campaigns, allowing advocates to send personalized referral emails directly through the platform.
Terms Integration: You can link to your terms of service page from referral signup forms, friend claim pages, and reward pages to ensure transparency.
Marketing Preferences: Both advocates and friends can opt into email marketing during the referral process, with customizable checkbox text and default settings.
10. Changes to the Program
We reserve the right to modify, suspend or terminate the Program at any time for any reason. We will notify you of any changes to the Program by updating these Terms or through other communications.
11. Reward Fulfillment and Processing
Reward fulfillment follows a specific process to ensure accuracy and prevent fraud:
Timing: Rewards are processed only after the referred customer's order has been marked as fulfilled in our system. This typically occurs after the order has been shipped and delivered.
Verification Period: Some rewards may have a verification period to ensure the purchase is legitimate and not subject to returns or chargebacks.
Reward Types: Rewards may be issued as discount codes, store credits, points, or other benefits as specified in the program details. The type and amount of reward will be clearly communicated when you join the program.
Delivery Method: Rewards will be delivered through your account dashboard, email notifications, or other methods as configured for your specific program.
12. Liability
We are not responsible for any incorrect or inaccurate information supplied by participants while participating in the Program.
13. Governing Law
These Terms are governed by the laws of the country/state where our company is located.
14. Contact
If you have any questions about the Program or these Terms, please contact us.
15. Program Participation Agreement
By participating in the Program, you agree to these Terms. It is your responsibility to read and understand these Terms before participating in the Program. Your participation constitutes acceptance of all program rules, fraud prevention measures, and reward fulfillment processes outlined above.
We reserve the right to update these terms as the program evolves to include new features, security measures, or customization options. Continued participation in the program after any changes constitutes acceptance of the updated terms.