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Choosing the right qualification moment is one of the most important decisions you will make when setting up your referral program. The rule of thumb is simple: qualify when money changes hands.
In the vast majority of cases, a referral should qualify when the referred person makes their first payment, reaches a "customer" status in your CRM, or completes a transaction in your payment system. This protects you from paying out rewards for leads who never converted.
For teams building a customer referral program, getting this rule right is one of the main differences between noise and a sustainable acquisition channel.
Here are some examples by business type:
You do not need to qualify and reward at the same time. It is completely normal to say "qualify when payment is made, but only issue the reward after 60 days" — this protects against refunds and chargebacks. Referral Factory supports reward delays for exactly this reason.
- SaaS: Qualify when the lead subscribes (Stripe payment received, or Lifecycle Stage = Customer in your CRM)
- Financial services: Qualify when a loan is approved or a policy is issued (CRM deal stage = Closed Won)
- E-commerce: Qualify when a purchase of over a minimum threshold is made
- Service businesses: Qualify when a contract is signed or a deposit is paid