Sailing the seas of online marketing and plundering the riches as an affiliate pirate.

Thursday, March 15, 2007

Agloco's referral system

As I mentioned in my previous post, I'd like to express my views on Agloco's referral system. I will try to outline it's pros and cons.

Agloco's referral system
As you probably know, Agloco has 5 referral levels. That means you get rewarded for people you refer - you get a percentage of their surfing hours (of course, they don't loose anything either). You also get rewards for the referrals of your referrals, and so on - 5 levels "deep". What makes it a bit confusing at first is that Agloco adds up all your referrals from levels 2 to 5 and shows them as "extended" referrals. So, you'll see "direct" and "extended", while there in fact are 5 levels of them.

Does that make Agloco a pyramid scheme?
While it's true that Agloco has 5 referral levels, it can't be called a pyramid scheme for the simple fact that you don't have to pay anything to join. You don't have to pay anything to make money, either. In addition, it doesn't matter when you join. You can start building your referral network at any time. However, I have to agree that users who joined earlier have better chances to get more referrals. Also, it's very likely that users without any referrals won't make much money. To conclude, there are some similarities, but the main point is that Agloco is free, so you can't loose anything.

Too many levels?
Referral system is a good thing; when you refer someone to Agloco, everyone wins. It makes sense that you get rewarded for the people you refer. It also makes sense that you get rewarded for the second level. After all, you are communicating with your direct referrals and helping them build their own downlines. However, you have very little control on the third level, and next to none on the 4th and 5th. You can't even track them on your Agloco account, because all you see is a total number of your "extended" referrals. Does it make sense that you get rewarded for the work of people that signed up through a chain of 4 other members? Theoretically, you could have 1 referral on each level, and 100 on the 5th, and still make the same amount of money like if you had referred that 100 people by yourself. And the problem here is that more money is needed to pay the referral rewards, and less money is avalaible for surfing rewards.
Agloco's income comes from showing you ads on the viewbar - but will top recruiters use it for 5 hours a month, when they get thousands of "hours" from their referrals? Will people with no referrals use it, if it will only make them less than $5 a month?

I realize that a lot of people will disagree, but I would be happy if Agloco had just 1 or 2 referral levels. This way you'd be rewarded for your own efforts. I also believe a bigger emphasis should be put on rewarding your surfing activity.

All comments are welcome - if you think that my opinion is wrong, please let me know.

1 comment: said...

I agree with you, two or maybe three levels of referrals would be enough and in some ways more fair.

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