Skip to content

Main content

Referral Incentive Two Party Cost Tool

Calculate referral incentive two party cost from explicit caller-supplied inputs.

Loading tool…

Description

Multiply referrals by qualificationFraction for qualifiedExpected.

A campaign cost term combines supplied counts, rewards, credits, and prices. Expected counts can be fractional, and net costs can be negative when credits exceed charges.

Multiply referrals by qualificationFraction for qualifiedExpected.

When to use this tool

Use Referral Incentive Two Party Cost when you need an explicit incentive, fee, or campaign-cost component.

How to use the tool and how it works

  1. Enter referrals, qualificationFraction, referrerReward, refereeReward, fixedCost. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read qualifiedExpected, incentiveCost, totalCost. Use the output convention below.

Multiply referrals by qualificationFraction for qualifiedExpected. Multiply that expectation by both parties' reward sum and add fixedCost for totalCost.1

Input fieldMeaning and unitsAccepted input
referralsReferralsRequired. Safe integer; minimum 0.
qualificationFractionQualification FractionRequired. Finite number; minimum 0; maximum 1.
referrerRewardReferrer RewardRequired. Finite number; minimum 0.
refereeRewardReferee RewardRequired. Finite number; minimum 0.
fixedCostFixed CostRequired. Finite number; minimum 0.
Output fieldInterpretationReturned shape
qualifiedExpectedQualified ExpectedRequired. Finite number.
incentiveCostIncentive CostRequired. Finite number.
totalCostTotal CostRequired. Finite number.
json
{
  "input": {
    "referrals": 100,
    "qualificationFraction": 0.5,
    "referrerReward": 10,
    "refereeReward": 5,
    "fixedCost": 100
  },
  "output": {
    "qualifiedExpected": 50,
    "incentiveCost": 750,
    "totalCost": 850
  }
}

Limitations and assumptions

  • Expected qualified referrals can be fractional; qualification is supplied and this does not model variability, fraud, taxes, or payment terms.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Reconcile the complete campaign ledger and applicable contractual, tax, and rounding rules before budgeting from a partial term.

References

  1. Calculation and input contract: marketing/referral-incentive-two-party-cost — tool.io

Similar or alternative tools