Can a successful website start their own affiliate network

Discussion in 'Affiliate Programs' started by WesParsons, May 11, 2007.

  1. #1
    IF (read the caps) IF

    I had a successful website with a quarter of a million registered active members, could I theoretically start an affiliate program whereby I offered an entry in a draw for every member they referred who signs on for a year? The winner of the draw gets a half million dollars?

    I've been thinking of building that capacity into my website, a referral program that auto-enters the referer when the referee's annual membership dues clear the bank.

    Do you need special software or could I just have that functionality built by the webmaster? I don't want just anyone driving people to our site, I want actual members.

    Any ideas?

    Wes
     
    WesParsons, May 11, 2007 IP
  2. jiminy465

    jiminy465 Peon

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    #2
    I don't know about half a million but yeh you could do it if you have enough experience. There is no reason why not i would check out your countries laws on that because i think you have to offer them at least some sort of service so it is not a pyramid scheme
     
    jiminy465, May 12, 2007 IP
  3. MollysBrother

    MollysBrother Active Member

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    #3
    My thought: If you offered a $500,000 prize, I wonder about the quality of traffic/membership that you would receive. What if you shared that amount of money with all the affiliates (instead of offering one single grand prize)?
     
    MollysBrother, May 12, 2007 IP
  4. jiminy465

    jiminy465 Peon

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    #4
    Because then that would make people push harder to get it, why would they try hard if they know they all get an equal share?
     
    jiminy465, May 12, 2007 IP
  5. weesep2

    weesep2 Peon

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    #5
    plus the reason people join my website is that we have a monthly half million dollar draw to begin with. They join for a year and get 12 shots at it, I was thinking that for every new referral they'd get a chance to win a 13th draw.....


    Jiminy,
    Which countries laws would need to be checked? The country my server resides in and that my company operates out of, or the country we're doing business with? (in this case, the US)

    Molly'sbro,
    I'm not concerned about getting bad quality membership. A successful referral would need to have a valid US address and be over the age of 18 and pre-pay their annual membership, the same things we ask out of all our members.

    Thanks,

    Wes
     
    weesep2, May 13, 2007 IP
  6. jiminy465

    jiminy465 Peon

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    #6
    If it is in the US then i am about 90% sure that it is fine. The only issue is that you do HAVE TO offer some sort of service for the membership cost aswell as making a downline, like offer training programs ebooks weekly newsletter, free courses etc.
     
    jiminy465, May 14, 2007 IP
  7. Kontent.solutions

    Kontent.solutions Peon

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    #7
    Precisely. I wouldn't trust my luck here. Instead if a 1000 of them get $500, more likely a lot more of them have chances to win, which will encourage your visitors to put in that 'Little Extra Effort'.

    My 2 cents.
    ~G
     
    Kontent.solutions, May 14, 2007 IP
  8. venturefox

    venturefox Notable Member

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    #8
    Well essentially it will be a sort of "lottery", Im not a lawyer so im not sure if that would count as gambling. You will have to check the laws of the country your server resides in because the authorities could theoretically cease the server if it is infact violating a law. The law provides a very fine line, if the situation was bad enough then authorities would also go after your domain.

    By my calculations you would need to charge each member at least $24 to cover the costs over a year, providing you have at least 250,000 paying members to start with - not an easy feat by far. If you plan it out well enough and have the drive to succeed then anything is possible.
     
    venturefox, May 14, 2007 IP
  9. icelts

    icelts Peon

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    #9
    the answer is :Y
     
    icelts, May 14, 2007 IP