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Old 5th April 2013, 11:18 AM   #1
voyska
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Default Affiliate Program Ideas

We are thinking about a few affiliate program models. Could you tell us which of the following would be the best to implement?

Idea 1:

We pay our affiliates $10 dollars for every Pro Merchant membership sale they generate. If a referral signs up as a Basic Merchant and transitions into a paid member within their first year of joining, we still pay the affiliate $10 dollars in commission!

Idea 2:

We pay our affiliates $10 dollars for every Pro Merchant membership sale they generate. If the referral renews their paid membership within 13 months from their previous purchase we pay another $10 dollars in commission to the same affiliate. In total the affiliate can make up to $30 (commission paid up to 3 times per referral) If a referral signs up as a Basic Merchant and transitions into a paid member within their first year of joining, we still pay the affiliate $10 dollars in commission. The affiliate has the opportunity to make up to $30 on the referral even though the referral join as a free user in the beginning.

Idea 3:

Commission levels (Multi Level Marketing). For every sale the affiliate makes, he/she makes 10% commission. If the affiliates referral goes off to participate in the program, the affiliate makes 3% on his/her sales. If his/her sales participate, the original affiliate makes another 2%. In total we pay out 15% per sale.

It is obvious, idea 3 will make us grow extremely quick. Affiliates will team up and become cash cows. Not a bad gig for them or us. Is this illegal?

Our cash cow solution would be to apply the 3 time commission payout from Idea 2 on each level. In the end Idea 3 is a limited MLM program.

Is idea 3 a ponzi scheme? Single affiliates can't hoard all the commission (they eventually lose their referrals), our users don't pay into our affiliate program to participate, affiliates can virtually target anyone as a referral to participate in the program and still have the opportunity to make money if they make a sale.

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Last edited by voyska; 6th April 2013 at 08:10 AM. Reason: Title change
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Old 6th April 2013, 02:12 PM   #2
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Nobody interested in sharing their thoughts?

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Old 13th June 2013, 01:23 PM   #3
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Well nobody is interested in commenting. Just an update then...

We decided to go with a one level, residual commission program. With a whole suite of referral links, banners, signup codes, email referral system, invitation referral system, making it extremely easy for anyone to get involved. Business or regular users refer other businesses and make money is the idea.

I think the decision of a one level program works best and makes people feel its legal. As soon as you mention MLM most people scatter.


We pay $10 USD per referral that purchases the Pro plan. We pay residual. Committed Evangelist make bonus's. All paid through Paypal.


It doesn't seem like much, but people with a network know it can add up quickly.

Our Pro service has a $75 annual fee to begin with, the affiliate can give out a $15 discount to boost referral signups, we have to pay the affiliate $10 in commission + bonus. Minus our Paypal fee, our time spent with personalized support, running cost... CiteAds boils down to a hobby business for us.

The site is a tool that helps local business save money and time by serving a place to host their regular ads online. It seems like just another listing site, but we do much more.

1) We generate free customized flyers for businesses to print, order and handout offline. The flyers bring people back online to view what ever they are advertising.

2) Since the ad is online, it's changeable. No need for fancy ads means no design cost. Printed flyers and posters are universal.

3) We have a custom design and print service. Because we're online, we kick back the work to the community.

4) We're partnered with local mail distributors to promote our online ads offline through direct mail and local magazines.

5) Because ads are online, we can track page visits. Analytics online and offline give great insight on strategy.


Any comments? It would be great to get some feedback.

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