Revshare programs are great – there is no denying this – assuming they are legit and sustainable, and all. There is no question that they are the easiest way to earn money on the internet.
To simply join a revshare and and buy your website traffic and do your daily activities to stay qualified to share in profits? Well, to only do this, you would certainly be selling yourself short.
That would be like buying a car that has 5 different gears and deciding that you never wanted to take it out of first gear. Earning-wise, that is about what you’d be doing to yourself. A terrible dis-service. In fact, you’d be totally cutting yourself off from the true power of these programs.
Those that are out there getting referrals to join them in their revshare programs will outearn those that aren’t doing it. The referral program is, basically the only reason many people DO join a revshare.
How does referring others increase your income so much? It isn’t too hard to understand this. You see – when you make an adpack purchase and you begin to earn profitshare.. those adpacks are dwindling-away. The profits you are earning are eating your adpacks’ value.
Lets say, for instance, you buy an adpack for $50 – and this particular rev share program they will pay you back 10% on top of that $50, to total $55. Well, as you begin to earn from the profitshare pool, the money you are earning gets deducted from that $55 that they are paying you back.
Your $50 becomes $55. It is cut and dried. Those “profits” that people like to show-off out of their back offices aren’t really a very good indication of what is going on. Onlookers are easily fooled into thinking that those are clean profits earned from the company.
Many new people join because of this, and don’t realize until much later that they have been “had”. Although they aren’t getting “ripped off” or anything like that.. they had a much higher expectation of how the money would be rolling out of the system.
Their sponsor made them think that this could happen, but not being clear enough while the new member was registering. Heck – all the sponsor wants is for you to come in and spend money on ad packs.
Here’s why your sponsor wants you to buy ad packs: Your sponsor will earn 10% (in most rev share programs, this is what it is) from each ad pack purchase that you make. Not just your initial ad pack buy, but every subsequent buy you EVER make.
You are tied to them, as their referral. If you come in and buy, say 10 ad packs for $500.. well, your sponsor just earned a CLEAN $50 into their “cash available” balance. This is money that they can use to either buy themselves another ad pack OR they can simply make a withdrawal and put the money into their pocket.
This $50 that they just earned didn’t “eat-away” at their ad packs’ value like their regular commissions do. This is why, above, I said that it was a CLEAN $50.
When you earn CLEAN referral commissions, you override the default system’s “trading $50 for an eventual $55”. THIS is where the money is, in a rev share site. Imagine, now.. with your $500 purchase – if you do your daily ad activities you’ll eventually earn enough commissions to make a “re-purchase” (with your internal funds), giving you 11 ad packs to earn off of now.
But guess what.. your sponsor just earned another CLEAN $5 from your $50 purchase.
As you continue to build-up your account – your sponsor is doing the same in his or her account. But having you, under them, feeding them this CLEAN money.. puts them into hyper-hyper gear compared to “trading $50 for an eventual $55, over a period of time”.
In fact, your sponsor could automatically withdraw the money earned from your purchases, knowing that they are still growing THEIR account. The money coming-up into their account is “gravy money”.
In the larger picture, company-wide, there is a profit pool that feeds everybodys’ commissions. This profit pool takes a SERIOUS BEAT-DOWN, because there isn’t any money put into it until ALL OF THE OTHER commissions get paid-out. And guess where the majority of a rev share’s profits go to? Yes, that’s correct.. referral commissions.
The profit pool only get what is left-over after everything else is paid. The lion’s share of money in these types of programs goes those who are sponsoring and building a team.
Here is why this is: Those that you sponsor are getting their own profits from the pool (and their own referrals, if they have any), and compounding them. As they compound (make their re-purchases) they are creating more direct $5 commissions straight into your account.
So, the more ACTIVITY you have, going-on underneath you, the more of the profits of the company you are “soaking-up’. All of those people who are ONLY BUYING ADPACKS AND DOING NOTHING ELSE.. well, they are at a disadvantage. Big time.
If they came-in with a whole lot of ad packs, they will still be OK, though. Having a ton of ad packs or sponsoring others is the best way to work your revenue sharing programs. To do BOTH of these, is ideal. Not to mention – it is easier to get your referrals to buy more ad packs if they see that you are doing it, too.