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skills/incentive-design/SKILL.md
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skills/incentive-design/SKILL.md
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name: incentive-design
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description: Use when structuring payouts, tiers, and eligibility for referral programs.
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---
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# Referral Incentive Design Skill
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## When to Use
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- Launching new referral or affiliate programs.
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- Revisiting incentive structures after performance reviews.
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- Adapting rewards for new personas, products, or regions.
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## Framework
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1. **Objective Alignment** – tie incentives to desired behavior (lead quality, revenue, product adoption).
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2. **Structure Options** – choose between cash, credits, swag, tiered multipliers, or charitable donations.
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3. **Economics** – model CAC/LTV impact, cap payouts, and define clawback rules.
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4. **Compliance** – account for tax reporting, regional regulations, and contractual clauses.
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5. **Experimentation** – define hypotheses, guardrails, and measurement cadence.
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## Templates
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- Incentive matrix (persona → action → reward → cap → notes).
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- Budget planner comparing reward scenarios vs target outcomes.
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- A/B test brief for incentive experiments.
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## Tips
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- Keep tiers simple; too many options create friction.
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- Pair with finance/legal early to avoid rework.
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- Document changes with effective dates for auditability.
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---
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