Abstract: A method is provided for using referral data to track software product sell-through and compensate software product distributors. A referral identifier (ID), that identifies a product distributor, is associated with a product. The referral ID may be placed on or within the product container, or in the original equipment manufacturer (OEM) case, directly written to the registry or other storage of a new computer. During product activation, the referral ID is sent, along with other referral data, to a server computer where it is stored. Once the server computer determines that a purchase related to the product has occurred, the server retrieves the referral data to identify the referring product distributor, the product involved, the date the product was activated, the date the related purchase was activated, and other related parameters. The referral data may then be audited and used to determine compensation for the identified product distributor.