TylerCruz.com: An Internet Entrepreneur's JourneyThe journal of a web entrepreneur on his journey to wealth.

The Power of Referring

I’m happy. In fact, I’ve been in a happy mood all day partly due to the fact that I made $0.17!

Why am I excited about a measley 17 cents? I’m excited because I signed up my first referrer from PublisherSpot via our Casale Media Review. I haven’t begun to advertise it yet since I’m waiting for a couple more reviews first, so this is a nice surprise.

Various ad networks pay differently, and some don’t pay at all (no affiliate program), but Casale Media in particular pays out 5%.
What that means, obviously, is that I receive 5% of whatever the webmaster I refer makes from Casale Media. Again, some ad networks only pay a certain amount out for a fixed period of time, such as 6 or 12 months, but I contacted Casale Media and they have no limit (at the moment). What that essentially means it that I’ll be making 5% of whatever this webmaster makes for life. As long as he uses CasaleMedia and CasaleMedia doesn’t go under or change their policies, this will remain true.

Now you can start to understand why I’m excited about the $0.17. This was just the first day, but it can be expected that this particular webmaster isn’t going to bring in any big income. Simple math shows that he made $3.40 today, and even if he was just testing the ads on a smaller site, chances are he won’t be raking in any big dough anytime soon. But let’s first assume that this webmaster always makes $3.40 a day, never increasing it. That’s still $5 for me a month. That’s $60 a year. So now you can understand the value of referring somebody.

Now, I’m considering this webmaster a very low income earner, but let’s say over the span of a year I end up signing up and referring 100 of these small-time earners, making $0.17 from each of them per day. That’s $17 a day, $510 a month, or $6205 a year. A difference that should be noted here between earning money this way and via your own site is that you’re making this money for life, and while it can fluctuate and go up or down, that you’re not doing a single thing. You don’t even own a website or have to worry about updating a website or anything; all this revenue is purely made as soon as you sign somebody up.

Now, let’s say that 1 in every 10 people you sign up is a medium earner, making $50 a day. That’s $2.50 you’re making from a medium-earner per day, or $912.50 per year. This is where you can really be smart and start offering incentives for people to sign up, such as hard cold cash. Offering somebody you know that will make $50 a day from their website, $500 to sign up under you may not be such a bad deal, as you’ll be profiting after 6 months (assuming they stick with the ad network).

This is how poker marketers work. They offer poker players $100 in cash, for example, just to sign up under them. There are no strings attached. What’s different between poker and ad networks though, is that most poker sites offer affiliates tiered payout structures. For example, if they earn $10,000+ a month, they’ll receive 35%, if they earn $20,000+ they’ll receive 40%, etc. This creates a major snowball effect and which is why the larger the affiliate, the more they can offer to pay to get sign-ups’.

Take a look at the image below (Click on it to enlarge and view it properly):

I originally posted this way back in June. Back before the US Legislation had effectively banned online poker in the US, I was starting to make decent money as an affiliate. The above screenshot is an example of ONE player I signed up, and the stats from a 9-day period. You’ll see that he played medium-limits and raked $8k. That is the portion the poker room takes. I had a rakeback deal with the site and so I actually paid him 2.6k of that back, and I got to keep 5% of it for myself, at $408. Think about that. That’s $408 for 9-days, from ONE player. It’s too bad about the US legislation bill…

But that’s the power of referring.

Getting back to PublisherSpot, let’s say I sign up a big earner. One who makes $1,000 a day, and believe me these people are not as uncommon as you might think. There are TONS of people out there making $1,000+ easy. But let’s just say this person makes $1000 a day. That’s $50 a day for me, $1500 a month, or $18,000 a year.

Now let’s take the scenario, that after 1 year of running and advertising PublisherSpot that I sign up a total of 10 big-earners at $1000 a day. That would be $500 a day, $15,000 a month or $182,500 a year.

And just think. How hard is it really to refer webmasters through PublisherSpot? Oh, I’m sure it will be quite difficult and will be a long road ahead, but the potential of the site is enormous and perhaps now you can see why I’m so excited to see my first referral and my first $0.17 🙂

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