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Membership drive incentive program

I've been thinking for a while now that being able to reward members for signing up or referring other members would be SO great.

A point system would be best, and when a certain amount of points is earned, they can trade them in for merchandise or credit toward renewal etc. But also just a straight automatic credit to their account would be ok too (for example, every application with their name or code they get $5 credit on their membership account).

Is this anything that can be automated - name or code links to them and adds the preset amount? Would help them help me to grow the membership without creating a bunch of manual tracking for me.

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