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setting your first earn rate
Set the first earn rate from the reward budget and the behaviour you need to change. Express the rule plainly, calculate the resulting liability, and test whether the reward is material to members.
## The mechanism
Define the qualifying event, value change, owner, correction path, and member explanation. Keep eligibility, liability, fulfilment, consent, and reversal as separate rules. The operating control must be testable from the ledger.
## Worked example
Illustrative arithmetic: an earn rate of 2 points per dollar on 350 dollars of eligible spend creates 700 points. At 1 cent per point, that balance represents 7 dollars.
## Do it
State the rule in one sentence. Map the event that starts it, the event that changes value, the exception path, and the review action. Test ordinary, cancelled, duplicated, and disputed cases before release.
## Common mistakes
- Measuring activity instead of the target behaviour. Name the counterfactual. - Treating face value as operator cost. Price fulfilment and correction. - Hiding exclusions or expiry. Put the boundary beside the decision. - Automating an undefined rule. Resolve ownership before implementation.