Referrals as a way to make a profit

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One of the ways to attract active users to a resource, and as a result, develop it and make a profit is referral programs. Traffic is provided by referrals: users who came to the site on recommendation and performed a certain action. In fact, everything comes down to a simple scheme: the company sells products through partners and pays them a fee for this.

Referrals: Features
This type of passive income is used in referral marketing (from refer – “to refer”). So, referrals are users who came to a certain resource via a unique link or promo code left by the referrer (otherwise, such a user is called an affiliate, sponsor, referrer), and registered an account there. And not just registered, but actively using the resource’s angola email list 276670 contact leads services (making payments, ordering products, watching videos, taking surveys). The ultimate goal of such a scheme is to expand the customer base and, as a result, make a profit.

There are two approaches to finding referrals. The passive approach involves posting links without any further activity on the part of sponsors. The active approach involves the sponsor independently searching for clients and then working with them: explaining the tasks and stimulating action.

Referrals are divided into direct and indirect. The first ones are those who came via the referrer's link, the second ones were brought by a referral link posted by others. There is another classification: single- and multi-level. In the first case, the affiliate receives income from the referral, in the second - from the clients brought by the referral.

Referrals: Features

Linking Resources
The platform for placing a referral link can be any resource where you can leave it: a thematic forum, a social network community, your own blog/site, a YouTube channel, a web bulletin board, as well as a recommendation to friends. These are free methods. Referrals are also bought on specialized exchanges, and the advantage of this approach is their activity and verification.

There are requirements for links: they should look as natural as possible, since there is a risk of falling into disfavor with the resource moderator due to spam and being banned.

Who uses the programs
This model of income generation is used by entities engaged in web commerce, regardless of format and scale: small businesses, online stores, bloggers in particular actively use the approach. Large-scale projects and commercial giants such as Webmoney, Oriflame, Amazon and others do not miss the opportunity to use referral marketing programs.

Features of payments and incentives
At first glance, such a scheme resembles a financial pyramid and raises concerns. However, it is safe for participants, since it does not require investment of funds, which distinguishes a referral program from a fraudulent scheme. Affiliates themselves subsequently receive income - referral payments, awards, incentives.

Payments are made in several ways. This is a percentage of sales, a one-time incentive for registration or clicking on a link, a commission from a completed transaction, etc. In addition, a gift, a rating increase, a discount on a product can be used as a reward.

Features of payments and incentives

Benefits of the referral program
This type of marketing activity has its advantages. For the website owner it is:

reduction of advertising costs;
significant increase in traffic;
improving the site's ranking in search results;
increase in profits .
The partners involved in the program use it as one of the sources of income, which is an advantage for them.

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