I have just been toying with a promo idea using the discount coupons. Just wondering if any one had tried anything like it and may have some idea about the problems.

The basics of the idea is a reward scheme.

When a customer joins they are giving a personal discount coupon, that they will be rewarded for if they supply them to their friends.

So if their coupon is used by select number of people they are giving a one time discount coupon of a set amount and then another at another amount when more people join and use their coupon.

Also each of the people that join would be giving the same deal so they would get a ten percent discount say off their first purchase of a friends coupon, and then be giving their own that they could get another ten percent discount off a new product and share it with their freinds.

The problems I see is most of it would be done manually, I was looking at the point system to see if I could make that work round the users view of how well they are doing. But this would still be a lot of work, and I am struggling with what the discounts would be for what number of new customers per coupon. Also there is the fact I can't seem to find a limit of items on a discount coupon.
Although I can write that into the regulations but strill see some idiot trying to buy all my stock half price.


Just wondering if anyone has done any thing like this and and if they could share any good or bad points.

Or if anyone can see any problems I may have missed would be greatfull