How does a good referral system works.

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Do you know how a good referral system works. My kind of vision is as follows. Take the example of MYlot.com first of all Invite your friends. Explain them the benefit of the programme (in general any programme you want the referrals)that his views matter a lot. He can express them on mylot and also get paid for it. Even he himseld can raise question and seek answers from thousands of like minded people on mylot. Secondly, insist that he signs up under your link and ask him to tell his referrals to do the same. What generally happens is that your referrals don't join under you, they directly go to website and sign-up. Read posts of your sponsor / referrals, post replies to them. Don't always expect them to post for you, you should also post to them. rate their comments and ask them to be so.Help them, if they have any problem in mylot.com. don't makes falses promises, if they fail, they won't belive in you next time. follow these rules to anytype of programme where you want to build your downlines. It will help.