I've noticed some discussion about adding a referral or affiliate program as steemit, to reward members for introducing the platform to new people. Since joining I've been wishing it had a referral program with a compensation plan.
Since we're into voluntarism here, participation could be voluntary. That way we can continue to say "you can publish here for free." Members who do opt in would earn from new people they introduce to steemit who also opt into the affiliate program. People could also join free and make sure they like the platform before opting into the comp plan.
I've read others suggest the money to fund this would come from a percent of referral's earnings. Another way might be to charge a set monthly rate. For an example, the cost could be set at $20 per month. steemit could use a standard 3x10 compensation matrix - see the example below (while this may have the appearance of a pyramid, this is a perfectly legal compensation plan. I've belonged to a online advertising program like this for years and earned over $9,000 with it).
In this example, members would earn $6.75 for each of the first 3 people in their down-line. This would happen whether they personally referred the new member, or the new member(s) came from spillover from someone in their up-line. Once the member gets 3 referrals - the $20 monthly cost is now covered - "Get 3 and it's free!" and every other person added now is pure profit.
If the member then successfully recruits a 4 prospect, or one falls from their up-line, the new member spills over to a second level. We would now earn $1 from every single member who appears below Level 1 - down 10 levels. Do the math, and if a matrix were to be completely filled, the member could earn up to $88,000 per month.
Significant New Revenue Stream for steemit
Members would now have TWO ways that they can earn; from publishing on the blog, and by referring new members. This would also be a significant revenue stream for the owners of steemit to help cover their expenses as the plan would pay out a maximum of $15.75 for each $20 paying member. steemit will earn a minimum $4.25 per member who opts into the affiliate program. If it got to be too much profit, the payouts per level could simply be adjusted upward.
steemit may very well grow organically and not require a compensation program to drive its growth. This is just another option if the owners decided they want to growth faster. I am told there are 100 Million affiliate marketers out there and they would all be potential prospects overnight.
Your opinions and suggestions are most welcome.
Louis Paquette (aka: diamondlou)
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@diamondlou Ok so an idea like this should have different tags and that's the only reason why this post isn't at the top of trending. If the idea is related to steem or steemit use those tags instead. You'll get boat loads more traffic. I would also keep the money tag, but get rid of the rest. Maybe add #payitforward since that one is getting some traction too.
My next blog is going to be a guide on these things I swear.
In the meantime, I thought you might be interested in this...
https://steemit.com/steemit/@williambanks/your-bank-is-an-anachronism
As for the soundness of the idea. I worry about multi level systems. The biggest resistance you're going to find is from people who will feel like this would make it even harder to fight the perception of being a pyramid or ponzi scheme. Since that does get said a lot by people who don't know what this place is and clearly don't understand how ponzi's work either. Unfortunately those same people have much more cachet and reach than we do now, so getting out the correct message is damnably hard.
I acknowledge the downside you mention how it could discolor the perception of steemit.
I really appreciate the tag suggestions! I clearly have no clue about these. And with only 7 cents to lose by editing, I would do that now. Except I don't see an edit link anywhere now... duh! Anyways, will definitely keep this in mind for future posts. Thanks again for the great input!
I try to read with an open mind but you lose me at ANY cost. We don't want bodies, we want authors. It sounds like Facebook charging to sign up. Anyone with talent will hear and come. Unless the membership comes with a level of pre existing fame, what does it offer? The real value isn't in the cost of admission.
Thanks, clevecross, appreciate your input.
I guess my response to that would be, if steemit is going to grow as I think it could, what you would give up by introducing the option to upgrade, might be offset by the fact that a comp plan could dramatically change lives for the better. It could allow some who have difficulty earning, to earn a living income. It could eliminate poverty for some families. It's hard to place a price on that, IMHO.
It's an upgrade to the price only. Unless that money is put into steempower, and that's an option already. What is upgraded? Now.... put a bundled software package together... Include all the different chats in a packaged software easy interface bundle. You got something to sell. This isn't anything but a charge.
An affiliate program could definitely work. I can imagine the platform looking much like many of the CPA financial trading platforms out there. Perhaps. Perhaps not.
The chart you gave is interesting.
Great read - thanks again.
Thanks booky. I just depends what the owners goals and priorities are.
Thanks again for your thoughts on the idea!
Love your post on steemit. I discovered your post about this site earlier. I like it so far and hope it works well for the both of us. Thanks again for the share.
Great to see you here Walt! It's definitely going to take some work and time and effort and good content - but it does seem like a great platform.
Great Post Louise. That is such a good idea. Steemit is already steaming ahead but your idea would take it to the next level. I'm following you buddy! Cheers