Welcome to the Beginners Guide To Get Paid To.....
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9: How To Build A Downline
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There
are four main ways to get referrals. You can buy them, use a referral
exchange, use a down-line builder or you can advertise for them. Lets
look at the different ways.
Please
note: All figures and amounts given below are for example purposes
only, they are not an indication of what values you should use, could
see and/or expect. |
Buying Referrals - Method 1
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There are two main ways in which you can do this.
Number one - Paying someone else to join one of your programs.
This
is a very risky thing to undertake before you have more experience. I
say this because if you paid me $1.00 to sign up to one of your
programs, I could join, then as soon as you send me the payment, leave
or become inactive. You have then just spent $1.00, and got nothing
from it in return. If you do use this particular method you are better
breaking the original $1.00 down into stages. You could make an offer
something like this;
$0.50 for signing up, $0.25 the first time I cash out at that program and then $0.25 when I cash out for the second time.
Why break it down this way?
It
increases the chance that I will work at that site until I reach my
first payout, thereby earning you a commission on these earnings and
the chance that, I will continue to the second payout, again earning
you commission during this period. There is also another two factors to
consider with this method. By being a member of a site long enough to
reach two separate payouts increases the chances of me staying with
that site permanently, thus giving you a permanent stream of referral
commission from me, increase drastically. Also, if I were a member of a
program long enough to reach payout, the might be a chance I would also
be recruiting members to my own down line, thus increasing your
commission earnings, if the program concerned offers commission on more
than one level of referrals. Of course though, if the program only
credits you for one level of referrals, this last point would be
irrelevant.
You could also offer me a
percentage of what I earn for you. To explain this aspect, assume that
a referral in the program you want me to sign up for, earns you 10%
commission on my earnings, you could then offer me a percentage of that
10% back. So for every Dollar I earn you would get $0.10 in commission
earnings. You could then offer me, (for example) 10% of those
commission earnings back, which would be $0.01 per dollar that I earn.
Most people when doing it this way will use a mixture of the techniques mentioned above. |
| Buying Referrals - Method 2 |
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Number two - purchasing referrals by buying them direct from the site.
Again
this is a risky thing to undertake as there are issues with this method
that you need to be aware of. You need to study the site you are
thinking of purchasing them from and you need to consider the following;
Can you trust the owner? - Are they just going to take your payment and not credit your account with any referrals? Does
this damage the long term sustainability of the site? Has the site
factored in that it will have no or few un-referred members?
This
means that the profit margin of some ads purchased will shrink, and
sometimes considerably, with sites that sell referrals and here's why;
A
site sells a $0.01 advert for $0.03. That means the advertiser
purchases an ad for $0.03, the site pays a member $0.01 for reading
that ad, then the sites profit on this transaction is the remaining
$0.02.
This is not all profit though,
because they have running costs that they need to meet/cover. These
running costs are hosting, domain names, a wage for the site owner etc.
The site owner (if responsible, and operating the site in a sustainable
fashion) would know that, and of that 2cent profit, ($0.02, this can
also be written as 2c) 50% needs to go back into the site to cover
running costs, that's 1c (one cent), leaving the other 1c to be
taken as a "wage", meaning that becomes part of the owners salary, or
income, for running their business. They would have also needed to
factor in the referral value that every ad purchased must also account
for. Now a responsible site owner would have worked this value into the
original ad price and would be covered by the 1c that was taken to be
used for the sites running cost.
But, in
any program, there are always un-referred members and these members are
of a higher financial value to the owner. Why? because when they click
that ad and earn their 1c, that's it, that's all the owner has to pay
for, for that member clicking that ad. There is no up-line, therefore
no referral commission to credit, because that member wasn't referred
to that site by anybody. So the owner has more than the original 1c
allocated for running costs, from the clicks that these type of members
make. So, these type of un-referred members will be earning a higher
amount for the site, than a referred member would. This surplus gets
absorbed into the "sustainability cushion". This basically means the
owner will have more funds available when unforeseen circumstances and
problems arise. (this could be an unexpected increase in hosting costs
for example) Because they have a large enough "sustainability cushion"
they can carry this deficit until they can adjust there pricing
structure accordingly.
Even so there is no
guarantee that the referrals you purchase will be active, or that they
will not leave the site after a week or so. Some sites do replace
inactive referrals, but they are very rare.
Now
what if another owner has not taken, or realised, the value of an
un-referred member into account. They simply see these un-referred
members as another very lucrative asset(s) that they could sell. So the
site sells all these un-referred members. They now have all this lovely
profit don't they? Well yes they do, but, they now have no, or very
few, un-referred members, they now have nothing going into that
"sustainability cushion". A less experienced owner could see this as
profit made, and, either add the amount to their personal wage, or
spent it on expanding the site etc. So what happens when the next
unforeseen problem occurs? They no longer have the funds available.
That means new advertising purchases will be paying the members for
earlier advertising clicks, instead of the money for this sale going
into the site funds, and being there to pay the member that are going to click
that ad, when they reach payout. So now all of a sudden the site is
running behind. Future sales are being used to pay members for clicking
on advertising that has already been paid for previously. What normally
happens to a site in this position is that, payout thresholds will
rise, payout requests will start to take longer and longer to be met.
And all this because they saw a means of a quick and substantial profit
earlier, without taking into account the ramifications of such an act.
Unfortunately most of the sites that fall into this pitfall, will fold
and members will lose their accounts. Very few of them will manage to
correct the slide and turn the situation around. That's bad right? Well
if you have just purchased a referral package then it gets worse, not
only have you lost your account and earnings, you have also lost the money you have
just spent on buying those referrals.
I am
not saying that either of the above methods are destined to failure.
They are used to some degree of success by quite a few people/members.
What I am saying is, please be aware of the pitfalls and only consider
using either or both of these methods, once you have gained a bit of
experience and knowledge about what exactly is involved, what factors
you need to consider, and you are able calculate the risks involved
accurately. |
Exchanging Referrals
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Referral
exchange sites are where members join and then will join each others
program on a one for one basis (normally). To explain:
If
you and I were members of the same exchange site, you could approach me
and say "I'll join under you at one of your sites if you join under me
at one of mine".
When using this particular type of site
you need to be aware that in order for it to work as intended, you (as
you are making the approach to me in this example) need to have the
necessary time available for the extra work load that you would gain by
joining an additional site. You need to be able to trust me so that I
wont just join, to get you in one of my programs, and then become
inactive or leave after a short amount of time.
I also
have to take the same conditions into account regarding you. Have I got
the time available for an additional program? How long are you going to
stay active in my program? etc etc. So, as you can see this type of
site doesn't automatically guarantee success. Again you need to
consider the variables and check each member that approaches you, or
you approach, that they have a reasonable record for keeping their end
of the deal. Why only a reasonable record and not a 100% record for
keeping their end of the agreement?
Well, and this is
another thing that you need to take into account, what if some of the
members lie about the positive aspects of joining any particular
program. Would you want to stay at a site that you were promised the
ability to earn $1.00 a day, but once you joined, you find that you
were only earning $0.25 a day for twice as much work as some of the
sites you're already a member of? I know I wouldn't.
Again,
using this type of method needs careful consideration and research, to
make sure that its going to work for you. Different members have had
varying degree's of success with different exchange sites. They can
work, and do work for some, but it is not the method you want to use
until you have the experience needed that will increase your chances of
success. |
Downline Builders
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This
can be a good way of gaining some referrals and its an easy method to
use as well. You will see a topic or thread in a forum or site, that
will have a description of the program concerned, and then a link to
join through. The members of that site will join in turn, each one
joining through the link of the person who joined immediately before
them. It will look something like this;
Topic Title = Abcptr.com
All links worth Xcents
3 Levels of referral commission @ 10%, 5%, 3%
$x.xx payout via PayPal, AlertPay & E-Gold
ETC, ETC, ETC
Please use this link;
http://www.Abcptr.com/ref?=amember
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The next person to join would join through the link above and then post something like;
CMI under amember (CMI means Count Me In)
next please use;
http://www.Abcptr.com/ref?=yourusernamehere
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And this would be repeated by the next member and then the next etc etc.
You
would join under the last link posted, then leave your referral link in
your post, so the next person will join under you and so on. These are
even more valuable if you are joining a program that has, for example,
5 levels of referral commission. This means the next five people to
join after you will be in your down-line. The next one in your level
one down-line, the next after that in your level two down-line etc etc.
Even if the program has only one level of referral commission, you will
at least get one ref. There can be drawbacks though, and that could be
that the next one(s) to join under you, and therefore into your
down-line, could, sign up and then for whatever reason become inactive
or leave (they do not like the site, they don't have the time, they
forget they joined - yes that really does happen! etc, etc). When this
happens just say to yourself "Tough luck, I hope I do better next time"
as there is nothing you can do. This is because most sites and forums
will not "edit" the down-line, to remove inactive members due to the
time and work involved doing so. It will happen to you, it will be
frustrating, but its happened to all of us at least ( and I do mean at
least!) one time or another. It is important to remember that you must
still research the site in full, before joining. Never take anybodies
word when they say "Great site - earn loads" or "Great owner, honest
and trust worthy". You will eventually learn who you can trust and who
you can't, but always make sure you follow your own opinions on/about
the site, never anybody else's - even me, until you are sure that you
can trust me. |
Advertising
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This
is the best method to start with and I will be helping you to set this
up shortly. It is hard work at times, but once you have learned how to
do it, and be successful at it, there is no limits to how many members
you will be able to gain in your down-line. The more successful you
are, the bigger your down-line will be. Although GPT work is not going
to provide you with a large monthly pay check at first, successful
advertising is the difference between how much, or how little you
will/can earn. A few people can make it all the way to earning a full
time income by doing GPT work, but they include within that, other
methods of earning. I will not drown you in information now, but this
is one of the major factors that will determine how successful you are
at working on-line. We will cover additional methods of earning at a
later date because most of the methods and techniques you are about to
learn, will be the foundations you will need, as you start to build
your Internet-Earning career.
There are two
methods of advertising, one is purchased advertising and one is free
advertising. You are going to use a combination of both. But as you are
only just starting out we will cover free advertising first. You are
about to use two methods of gaining referrals, one will be site by
site, and the other will be getting them (hopefully) to join three or
four sites at a time. Some people prefer to recruit using just one of
the methods, some preferring to recruit site by site, whilst others
prefer to recruit them by getting them to join a few sites in one go.
I, personally use a mixture of both (as many others do) and have found
that way to be the most successful method for me. We do not know which
method will work best for you, and if you were to learn how to do both
at the same time you would be swamped with information. So firstly we
are going to cover the "getting them to join multiple programs" method
as this is the easiest to learn and some of the methods used will also
be used (amongst others) in the other method.
You
now have an outline of some of the different methods of gaining
referrals and building your down-lines. It will not be easy at first,
but it will be very rewarding once you start to see all your hard work
paying off. The next stage will cover building your down line in one
site at a time. |
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