Tuesday, December 28, 2010

Referrals and How They Earn You Money

You might be wondering, "Just what are referrals, and what's so great about them, anyways?"

For some people who choose to make money online, referrals are their absolute best friends! Especially for those who have a large amount of them that happen to be active. Here's why.

Referrals are basically whenever someone signs up under a certain sign-up link specific to only you. Usually, you get some sort of compensation, sometimes constant. For example, if you refer someone at Swagbucks, you will receive ever SB they earn searching until 1000 SB. Receiving money or some other compensation constantly (some places have caps) is often better than a one-time one. As you can see, Swagbucks has a cap on their referral program.

If the compensation isn't constant, or you receive the bonus as soon as they sign-up, it doesn't matter whether or the user stays active or. But if the compensation depends on what the referral earns, he or she has to remain active for you to benefit. And if there's anything harder than getting referrals, it's getting active referrals.

If you click the picture, you can open a bigger version in another window.
As you can see, most of my referrals are marked 'active.' This means that they have activated or verified their account. It doesn't exactly mean they'll actually continue using the site, which was what I thought as first.

The snipped picture above is my referral page at Zoombucks. I've succeeded in getting fourteen referrals in one week mostly because this is a new, quality money-making site. The conversion there is 100 ZB for $1. So it looks like I've earned around 7 bucks for all my referrals. But, on this site you only get 10% of what your referrals earn. In reality, I've only earned seventy cents from my referrals, and it doesn't look like that amount will be changing because after the first day, they all stopped earning points.

Doesn't sound pretty good, huh? Like I said, the key is having active referrals. If you can get them all to be active, you're good to go!

Let's say all fourteen of my referrals earned 2000 points per month which is $20. That is a total of 28,000 ZB or $280. If I get 10% of that chunk of cash, I've got $28 in my account for doing relatively nothing besides referring. Pretty sweet, huh? (If only I could get that to happen...) Eventually though, if you firmly believe in the product you are referring and you keep on referring people, you will get some people who are there to stay for a long time.

There are also certain GPT companies that allow you to buy referrals with money or points. I wouldn't recommend doing this unless they enabled you to recycle any inactive referrals or referrals that aren't earning much. This seems to be very popular on Neobux.com, a PTC site.

Some referral programs come with multiple tiers, which will earn you much more money than a site with just one tier. Tiers are basically where you can earn the money your referral earns from their own referral. And in some cases, you can earn the money that referral makes from their own referrals. If you manage to get a whole bunch of referrals with programs like these, you will make a bunch of money!

As you can see, referrals can be a great potential money-maker, as long as you know how to get and keep them.