How does referrals work?

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This discussion could help the newbies know a little more about earning here in myLot. How does referrals work? As we all know one way of earning here in myLot is by making referrals.. If you know how does referral work out please tell it here. I am also a newbie and not yet that expert here in myLot. One of my problem is when I send the referral link to my friend and they open it, they are directed to the home page of myLot. Is that how it really works? Will they be my referral if they open my link and register from that PC/IP? Please be helpful upon this discussion. And for those who are an expert, maybe you could put the do's and don't's of myLot. Let us not stick to the topic referral.