Case
1 (Car Dealer)
John is a car dealer. He sells cars for $60,000 and receives a 10% commission from each successful sale. On average he sells one car per month, so his income is about $72,000 per year.
After attending a conference on Affiliate marketing he decides to launch his own affiliate program.
He arranges meetings with auto mechanics, writers who submit articles to cars magazines, students, friends, and people interested in sources of additional income.
After several weeks of meetings and discussions John decides to start his affiliate program. His objective is to increase sales by 80%.
|
Date |
Event |
John’s Actions |
|
2/20/99 |
AP Settings |
Set up AP settings: 2-levels, type=$fixed, period=1 month Payment on the first level $3,000, on the second $1,000 |
|
2/22/99 |
Announcement of AP |
John announces his AP to all participants of the meetings. |
|
2/24/99 |
First affiliates |
John registers the first five affiliates: Bill with Affiliate ID=1, Reference ID=0 Mary with Affiliate ID=2, Reference ID=0 Mike with Affiliate ID=3, Reference ID=0 Judy with Affiliate ID=4, Reference ID=0 Karen with Affiliate ID=5, Reference ID=0 |
|
3/2/99 |
The first sale from AP and a new affiliate (Bill referes a customer Tom whoh also becames an affiliate.) |
John registers the first sale with Bill Affiliate’ ID (=1) and the sum $60,000. John registers a new affiliate-Tom with Affiliate ID=6 and Reference ID=1. |
|
3/23/99 |
A new affiliate |
John registers Holly with Affiliate’ ID=7 and Reference ID=2. |
|
3/27/99 |
A new sale |
John registers a sale with Reference ID=2 and sum=$60,000. |
|
4/1/99 |
The first payments to affiliates |
John generates the report Payments Due, registers payments to affiliates ($3,000 to affiliate with ID=1 and $3,000 to affiliate with ID=2) and sends the checks to Bill and Mary. |
|
4/4/99 |
A new affiliate |
John registers Sam with Affiliate ID=8 and Reference ID=4. |
|
4/5/00 |
A new sale |
John registers a sale with Reference ID=4 and sum=$60,000. |
|
4/19/99 |
A new affiliate and a new sale |
John registers Gideon with Affiliate ID=9 and Reference ID=4, and he registers a sale with Reference ID=4 and sum=$60,000 |
|
5/1/99 |
Payments to affiliates |
John generates the report Payments Due, and registers payments to affiliate($6,000 to affiliate with ID=4)and sends check to Judy. |
|
5/15/99 |
A new affiliate |
John registers Raff with Affiliate ID=10 and Reference ID=1. |
|
5/22/99 |
A new affiliate and a sale |
John registers Daniel with Affiliate ID=11 and Reference ID=5, and he register a sale with Reference ID=5 and sum=$60,000. |
|
5/28/99 |
A new affiliate |
John registers Jeff with Affiliate ID=12 and Reference ID=3. |
|
5/30/00 |
A new sale |
John registers a sale with Reference ID=3 and sum=$60,000. |
|
6/1/99 |
Payments to affiliates |
John generates the report Payments Due and registers payments to affiliates ($3,000 to affiliate with ID=3 and $3,000 to affiliate with ID=5), and sends checks to the affiliates. |
|
6/2/99 |
A new affiliate |
John registers Ellen with Affiliate ID=13 and Reference ID=1. |
|
6/12/99 |
A new affiliate |
John registers Zack with Affiliate ID=14 and Reference ID=8. |
|
6/13/00 |
A new sale |
John registers a sale with Reference ID=8 and sum=$60,000. |
|
6/27/00 |
A new sale |
John registers a sale with Reference ID=10 and sum=$60,000. |
|
6/29/99 |
A new affiliate and a sale |
John registers Garry with Affiliate ID=15 and Reference ID=10; he also registers a sale with Reference ID=14, sum=$60,000. |
|
7/1/99 |
Payments to affiliates |
John generates the report Payments Due,registers payments to affiliates ($1,000 to affiliate with ID=1 (from the 2nd level), $1,000 to affiliate with ID=4 (from the 2nd level), $4,000 to affiliate with ID=8 ($3,000 from the 1st level and $1,000 from the second level), $3,000 to affiliate with ID=10, $3,000 to affiliate with ID=14), and sends checks to the affiliates. |
Quarter results of running the affiliate program:
|
|
Before the launch of AP |
After |
|
Persons involved in sales (at least partly) |
1 (John) |
16 (John +15 affiliates) |
|
Sales volume (per month) |
$60,000 |
$185,000 |
|
John’s income (monthly average) |
$6,000 |
$14,000 |
|
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