TheRodinhoods

[PapayaPost.com] To launch or not to launch ( A Referral Scheme)

Hi Folks,

I needed an opinion on how effective referral schemes are to make existing users to refer their friends to a website.

We had launched PapayaPost.com sometime back.
On PapayaPost.com one can buy, sell and rent out stuff (like apartments, cars, furniture), find roommates, carpool and do much more.The best part about PapayaPost is that only people with a verified company email id can join PapayaPost hence you meet genuine buyers and sellers on this site. Its like an extension of your company notice board.

The site has gained decent traction in the NCR region since its launch and now we are planning to spread the word. For this we are thinking of launching a referral scheme where every user will get a Steve Jobs mug on referring 10 friends. 

This turns out to be roughly INR 20 for each new user acquisition.

How good are such schemes in getting users to the site ? Is it too eary for us to get into this game ?
Any insights from people who have successfully or unsuccessfully launched such schemes would be great.

Thanks
Garima
Co-founder, PapayaPost.com
https://www.facebook.com/PapayaPost 
https://twitter.com/PapayaPost