Let's say that you have the following referral program campaign: 'Refer a friend and get 50% of your friend's total purchase, you can win up to $500 bonuses
'. And that John refers Matt. Matt signs up on your website and starts buying new products.
In this scenario, John is the advocate and Matt is the referral. Every time Matt completes a purchase, John receives 50% of the purchase value. When Matt makes a $100 purchase, John receives $50 and so on. If Matt makes 11 purchases of $100, John should wins 11 * 100 * 0.5 = $550, but because of the $500 cap on the campaign, he receives only $500.