Need opinions on doing a members giveaway
 

On my social site I started charging for premium features and some of the members have paid and upgraded. yay!
So now Im about to hit my 1 year aniversary on the site and I want to give something away. Im thinking of giving cash away.

here are my 2 ideas:
1. Do a giveaway where I give $50 to 5 members, BUT they have to be paying members in order to enter. If they're free members theyre not eligible for the giveaway.
I'll pick 5 paying members out of a hat and if they get picked then they win.

or

2. Do a giveaway where if people refer a friend to the site then they get a ticket for every friend they refer. If they refer 1 friend they get 1 ticket. If they refer 10 friends they get 10 tickets, etc.
And I'll give away like $50 to 5 people.

What do you think? Is one better than the other?

I would do # 1 .

they'll be lazy and more about to scam if you use # 2.

Nothing easier than to icq 10 people to sign up with your refferal and never ever visit the site again.

thanks for the advice