In the previous post we considered how income sharing programs may help to end our personal recessions (see [3]).
In this post we consider a simple method to estimate direct and indirect referrals in income sharing programs (ISPs) or refer a friend programs (RFPs).
Firstly, we need to understand different types of motivations people have when they buy products/services and participate in ISPs or RFPs.
There are three types of such motivations:
a) consumer motivation: need or want or like products/services;
b) financial reward motivation: want financial rewards for direct referrals;
c) income motivation: want regular passive income from ISPs for indirect referrals.
Let us assume that we want to estimate a number of direct referrals for the super foods list generator or private generated on demand (GOD) offline crypto wallets.
To estimate a number of direct referrals we need to look into our contacts lists and estimate numbers of potential direct referrals based on each type of motivations.
Let us assume that your contacts list has 100 persons. 15 persons from the contacts list have the consumer motivation as the main motivation, 25 persons from the contacts list have the financial reward motivation as the main motivation and 20 persons from the contacts list have the income motivation as the main motivation. Therefore, in total there are 60 potential direct referrals in your contacts list.
As you can see, estimations of numbers of direct referrals are not complex and are not time consuming. This task become a bit complicated and time consuming for estimations of numbers of indirect referrals.
Let us estimate a number of indirect referrals on the second level. Now, we need to contact those who are potential direct referrals and ask them to make such estimations based on their contacts lists.
Let us assume that each of 60 direct referrals identified in their contacts lists 50 new potential direct referrals. Therefore, we have 60*50=3,000 potential indirect referrals (on the second level). If an average annual sale to the referrals is only $20 and your commission rate is 10%, you have $2*3,060=$6,120 annual passive income from all these referrals.
This procedure can be repeated to the maximal level in the payment scheme. When we have such estimations of referrals on each level of a payment scheme, we can estimate annual passive income from ISPs using ISPcalc (see [2]).
In the next post we consider a simple way to encourage your referrals to make new referrals.
Reference
[1] A simple way to get stable regular yearly income from income sharing programs.
[2] ISPcalc https://www.ispreport.xyz/utools/ispcalc/ispcalc.html
[3] A simple way to determine if you are in a recession
