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Does every participant who refers at least one person to the website get entered in the Referral Contest? I would rather limit participation to people who bring in new signups.

Not necessarily.  They will be counted as participants in your referral contest when they sign up on the InviteBox widget.  The winner(s) will be chosen based on the number of referrals that visit or convert on your site.  You may also pick the winner based on how many of their referrals enter your referral contest.

 

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