It is a fraud prevention technique.
It sounds like a pretty clear cut case of your referrals need to rebill for a minimum term of 90 days to get the referral credit. This is standard (more common than not) for commissions at the hosting level, as well as the real world in general if you do any sort of commissioned sales. All new sign ups need to rebill for a minimum of 30/60/90 days before credit is paid. If they cancel prior, you do not get the green.
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Should You Email Your Members?
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Enough Said. 
"Would you rather live like a king for a year or like a prince forever?"
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