Many people have the wrong idea about referrals. Referrals are a win/win situation for both the person being referred and the person that accepts the referral. I wanted to clear up any misconceptions that anyone may have that referrals are a bad thing because they are not in my opinion.
A referral is a code or link that you can click on to take to you a site you are interested in joining as a referral of a member. It’s much nicer to join a site through a referral because you will be helping out the person that referred you. If you are joining a site that has earnings such as Google AdSense it is true that both you and the referral person will earn. However, you will earn your own earnings and the referral will earn theirs.
Yes the referral will earn a bonus for a referral. However, that bonus does not come from your earnings. You will receive all of your earnings. The referral will receive all of his/her earnings, plus additional earnings for your referral. The payment for the extra earnings will not come from your earnings. The extra comes directly out of the company’s earnings.
The referral person is earning a percentage based on what you have earned. Again that share comes from the company and not from your earnings. If you earn $1000 and he/she gets 30% of the $1000, the 30% will not come from your earnings. The company needs to set an amount for the referrals earnings and they have chosen to base that amount on what you will earn. Instead of pulling a random number for referrals, they will use your earnings to set a number.
Many referrals are great for a form of passive income and could get you earnings for months or years to come. Remember when you are considering using someone’s referral there may be someone else considering using one of your referrals too. Wouldn’t you want them to join under your referral since they were going to join anyway and both of you win?
Your referral is not earning money from your earnings. All payments are from the company’s earnings. Your earnings are simply setting a threshold for their payment. The better you do the better they do is true. However, you are still earning no less because you signed up under a referral than if you didn’t sign up under a referral.
Don’t look at the situation as you versus them or me versus you. We are all in the niche together. If one wins I would hope we all win. Don’t view someone offering you a referral as the competition. I have used many referrals and it’s worked out great for me.
This is my personal outlook on referrals and many may disagree. If you have an opinion, let me know about it.