Referral Programs

I'm thinking about various referral programs that many websites have. You know, somebody registers with your referral link or invitation code, and you get a commission or a one time payment for referring a new member...

The thing i am thinking about, and the topic of my discussion here, are the sites that offer a percentage commission on everything somebody's referral earns forever.

For example Bubblews doesn't fall in this category because it's pretty clear how things work here, you get 0.20 cents for each referral that registers under you when they make their first post. That's it, end of story...

But for websites that pay a percentage from everything someone's referral earns, i wonder, is it smart be be someone's referral, or to refer people to be your referrals???

Here's what i'm thinking. You are a member making $100 a month. And you get 10 referrals who also make $100 per month. and your comission from each of those members is $5 per month, or 5% from what they are making. Now, that means you get $50 extra dollars per month on top of the $100 you are making yourself, equating to $150 dollars per month.

So if the website gets rid of you, they will be saving those $50 that they have to pay you, plus they get to keep those 10 members that after you are gone will not be making referral commission money for anyone.

If they get rid of 5 of your referrals, they save money again, just less...

So it would make sense that those types of websites would prefer members who are not referred by anyone, and who do not have any active referrals under them making them money.

Of course, if they have such a referral program in place, then they have to honor it and pay their members. But is it safer to go at it alone? I mean, if you are not referred by anyone, and have no referrals under you, would you be safer from losing your account, getting banned etc?

These are questions that pop into my mind from time to time... And there isn't really a post or anything out there about this "issue" from the few google searches i made... It definitely makes sense, as far as the websites profits are concerned...


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↠ This post was originally published on Bubblews in the Reviews category by me (Bubblerian) on August 11th 2013.