Case
2 (Newsletter writer)
Bill writes a newsletter and sells it via his site for a price of $120 (subscription per year). After several months of promotion efforts via submissions to search engines and e-mailing campaigns he reaches the level of 200 subscribers. Bill is not satisfied with this result and searches for more efficient methods of promotions. After several months of research on new promotion methods he decides to launch his own affiliate program.
Bill’s objective is: increase the number of subscribers
and monthly income on 25%.
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Date |
Event |
Bill’s Actions |
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3/20/00 |
The decision about AP Settings |
Set up AP settings: 5-levels, type=percents, period=1 month, unit of payment-$, minimal payment -$5. Percentages: 1st level-10%, 2nd-5%, 3rd-3%, 4th-1%, 5th-1%. |
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3/21/00 |
Announcement of AP |
Bill announces the AP to all his subscribers. |
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3/24/00 |
First affiliates |
Bill registers the first ten affiliates:
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3/27/00 |
New affiliates and new subscribers |
Bill registers seven new affiliates:
and ten new sales (subscribers).
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3/28/00 |
New affiliates and new subscribers |
Bill registers five new affiliates:
and twelve new sales (subscribers).
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3/29/00 |
New affiliates and new subscribers |
Bill registers two new affiliates:
and five new sales (subscribers).
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3/30/00 |
New affiliates and new subscribers |
Bill registers a new affiliate:
and three new sales (subscribers).
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4/3/00 |
New affiliates and new subscribers |
Bill registers two new affiliates:
and seven new sales (subscribers).
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4/5/00 |
New affiliates and new subscribers |
Bill registers two new affiliates:
and ten new sales (subscribers).
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4/11/00 |
New affiliates and new subscribers |
Bill registers a new affiliate:
and ten new sales (subscribers).
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4/17/00 |
New subscribers |
Bill registers new sales (subscribers).
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4/21/00 |
First payments |
Bill generates report Payments Due,and sends checks to
affiliates:
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Monthly results of running the affiliate program:
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Before the launch of AP |
After |
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Persons involved in sales (at least partly) |
1 (Bill) |
31 (Bill +30 affiliates) |
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Number of subscribers |
200 |
267 |
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Sales volume (per month) |
$ 2,000 |
$ 80,040 |
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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.
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Copyright © 2002 AdvMathAppl
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