Case2

Case2

Case 2 (Newsletter writer)

Bill writes newsletter and sell it via his site for a price of $120 (subscription per year). After several months of promotion’s efforts via submission to search engines and e-mailing campaigns he reaches the level of 200 subscribers. Bill is not satisfied with this result and searches for more efficient methods of promotions. After several months of research on new promotion methods he decides to launch his own affiliate program.

Bill’s objective is: increase the number of subscribers and monthly income on 25%.

Date

Event

Bill’s actions

3/20/00

The decision about AP Settings

Set up AP settings:

5-levels, type=percents, period=1 month, unit of payment-$, minimal payment -$5.

Percentages: 1^st level-10%, 2^nd-5%, 3rd-3%, 4^th-1%, 5^th-1%.

3/21/00

Announcement of AP

Bill announces the AP to all his subscribers.

3/24/00

First affiliates

Bill registers the first ten affiliates:

Affiliate’s ID	Reference’s ID
1	0
2	0
3	0
4	0
5	0
6	0
7	0
8	0
9	0
10	0

3/27/00

New affiliates and new subscribers

Bill registers seven new affiliates:

Affiliate’s ID	Reference’s ID
11	1
12	2
13	4
14	1
15	6
16	2
17	3

And ten new sales (subscribers).

Affiliate’s ID	Sum	Comment
3	720	6 subscribers
6	480	4 subscribers

3/28/00

New affiliates and new subscribers

Bill registers new five affiliates:

Affiliate’s ID	Reference’s ID
18	3
19	5
20	5
21	7
22	9

And twelve new sales (subscribers).

Affiliate’s ID	Sum	Comment
1	240	2 subscribers
7	240	2 subscribers
9	480	4 subscribers
11	480	4 subscribers

3/29/00

New affiliates and new subscribers

Bill registers two new affiliates:

Affiliate’s ID	Reference’s ID
23	1
24	19

And five new sales (subscribers).

Affiliate’s ID	Sum	Comment
13	360	3 subscribers
18	240	2 subscribers

3/30/00

New affiliates and new subscribers

Bill registers a new affiliate:

Affiliate’s ID	Reference’s ID
25	21

And three new sales (subscribers).

Affiliate’s ID	Sum	Comment
16	120	1 subscriber
19	240	2 subscribers

4/3/00

New affiliates and new subscribers

Bill registers two new affiliates:

Affiliate’s ID	Reference’s ID
26	25
27	1

And seven new sales (subscribers).

Affiliate’s ID	Sum	Comment
13	360	3 subscribers
18	480	4 subscribers

4/5/00

New affiliates and new subscribers

Bill registers two new affiliates:

Affiliate’s ID	Reference’s ID
28	25
29	21

And ten new sales (subscribers).

Affiliate’s ID	Sum	Comment
2	120	1 subscriber
5	240	2 subscribers
7	240	2 subscribers
12	120	1 subscriber
14	240	2 subscribers
17	240	2 subscribers

4/11/00

New affiliates and new subscribers

Bill registers a new affiliate:

Affiliate’s ID	Reference’s ID
30	28

And ten new sales (subscribers).

Affiliate’s ID	Sum	Comment
3	120	1 subscriber
8	240	2 subscribers
19	240	2 subscribers
22	120	1 subscriber
24	240	2 subscribers
28	240	2 subscribers

4/17/00

New subscribers

Bill registers new sales (subscribers).

Affiliate’s ID	Sum	Comment
2	120	1 subscriber
5	240	2 subscribers
7	240	2 subscribers
12	120	1 subscriber
14	240	2 subscribers
30	240	2 subscribers

4/21/00

First payments

Bill generates report payments and send checks to affiliates:

Affiliate’s ID	Sum ($)
1	72
2	42
3	132
4	36
5	79.2
6	48
7	76.8
8	24
9	54
11	48
12	24
13	72
14	48
16	12
17	24
18	72
19	60
21	9.6
22	12
24	24
25	19.2
28	36
30	24

Monthly results of running the affiliate program:

	Before the launch of AP	After
Persons involved in sales (at least partly)	1 (Bill)	31 (Bill +30 affiliates)
Number of subscribers	200	267
Sales volume (per month)	$ 2,000	$ 80,040
Bill’s income (monthly average)	$ 2,000	$ 2,583

If similar rate of grows (29%) will be preserved then in the next month his income will be about $3,000 next (after previous) month $3,500, and to the end of year will reach $6,500 per month.

Copyright © 2001 Apfa Group
Last modified: March 10, 2001