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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