Case 2 (Newsletter writer)

 Bill writes a newsletter and sells it via his site for a price of $120 (subscription per year). After several months of promotion efforts via submissions 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: 1st level-10%, 2nd-5%, 3rd-3%, 4th-1%, 5th-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 ID

Reference 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 ID

Reference ID

11

1

12

2

13

4

14

1

15

6

16

2

17

3

 and ten new sales (subscribers).  

Affiliate ID

Sum

Comments

3

720

6 subscribers

6

480

4 subscribers

3/28/00

New affiliates and new subscribers

 

 

Bill registers five new affiliates: 

Affiliate ID

Reference ID

18

3

19

5

20

5

21

7

22

9

 and twelve new sales (subscribers). 

Affiliate ID

Sum

Comments

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 ID

Reference ID

23

1

24

19

 and five new sales (subscribers).  

Affiliate ID

Sum

Comments

13

360

3 subscribers

18

240

2 subscribers

3/30/00

New affiliates and new subscribers

 

 

Bill registers a new affiliate: 

Affiliate ID

Reference ID

25

21

 and three new sales (subscribers).  

Affiliate ID

Sum

Comments

16

120

1 subscriber

19

240

2 subscribers

4/3/00

New affiliates and new subscribers

 

 

Bill registers two new affiliates: 

Affiliate ID

Reference ID

26

25

27

1

 and seven new sales (subscribers).  

Affiliate ID

Sum

Comments

13

360

3 subscribers

18

480

4 subscribers

4/5/00

New affiliates and new subscribers

 

 

Bill registers two new affiliates: 

Affiliate ID

Reference ID

28

25

29

21

and ten new sales (subscribers).  

Affiliate ID

Sum

Comments

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 ID

Reference ID

30

28

 and ten new sales (subscribers).  

Affiliate ID

Sum

Comments

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 ID

Sum

Comments

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 Due,and sends checks to affiliates: 

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

 

 

Copyright © 2002 AdvMathAppl
Last modified: Jan 14, 2002