Case
7 (Shop Owner)
Kate is a small shop' owner. She sells books and CDs. On average she sells $15,000 per month, and her profit is 20% of those sales, so her income is about $3,000 per month.
Kate wants to expand her business. She asked her bank about a loan, but the bank refused. After this attempt she called to her friends and asked for advice.
One of her friends, Jimmy, is a Marketing Consultant. He advises Kate to launch her own viral marketing program. This will increase the volume of sales and the size of Kate's sales force.
After spending two weeks on research/education about viral marketing she decides to launch her own affiliate program (AP).
|
Date |
Event |
Kate's Actions |
|
19/03/01 |
AP Settings And
announcement |
Set up AP settings: 4-levels,Ttype=% Period=1 month, Unit=$, MinPayment=$1, Announces the
AP |
|
20/3/01 |
First affiliates |
Kate registers the first through fifth affiliates:
Mary with ID=1, Bill with ID=2, Judy with ID=3, Mike with ID=4,
Karen with ID=5, and all with Reference's ID=0. |
|
21/3/01 |
New affiliates |
Kate registers
new affiliates: Tom with ID=6 and reference's ID=1, Vick with ID=7 and
reference's ID=1, Garry with ID=8 and reference's ID=2, Tim with ID=9
and reference's ID=2, and Lee with ID=10 and reference's ID=3. |
|
22/3/01 |
First sales
generated by affiliates and new affiliates |
Kate registers first sales:$100 with affiliate's ID=1, $50 with affiliate's ID=2,
and $60 with affiliate's ID=4.
Jeff with ID=11 and reference's ID=3,Rod with ID=12
and reference's ID=4,Santa with
ID=13 and reference's ID=4,and Cliff with
ID=14 and reference's ID=5. |
|
23/3/01 |
New sales and affiliates |
Kate registers new affiliates:Claier with ID=15
and reference's ID=6,Alex with ID=16
and reference's ID=6,Nick with ID=17
and reference's ID=8, and Pit with ID=18
and reference's ID=8 Her new sales are $20 withaffiliate's ID=3,
$10 with affiliate's ID=1, and $30 with
affiliate's ID=5. |
|
26/3/01 |
New sales and affiliates |
Kate registers new affiliates: Pat with ID=19 and reference's ID=9, Alan with ID=20
and reference's ID=12, and Dan with ID=21 and reference's ID=12.
|
|
27/3/01 |
New sales and affiliates |
Kate registers new affiliates:Daniel with ID=22 and reference's ID=13 and Samanta with
ID=23 and reference's ID=14. Her new sales are:$20 with affiliate's ID=1,$35 with
affiliate's ID=3,$40 with affiliate's ID=6,
$50 with affiliate's ID=9,
$10 with affiliate's ID=12,
$20 with affiliate's ID=15,
$30 with affiliate's ID=18, and
$25 with affiliate's ID=20. |
|
28/3/01 |
New sales and affiliate |
Kate registers a new affiliate:George with ID=24 and reference's ID=16. Her new sales are:$20 with affiliate's ID=2,
$20 with affiliate's ID=4,
$45 with affiliate's ID=6,
$35 with affiliate's ID=9,
$10 with affiliate's ID=12,
>$25 with affiliate's ID=17,
$34 with affiliate's ID=19,
$19 with affiliate's ID=22, and
>$33 with affiliate's ID=23. |
|
29/3/01 |
New sales and affiliate |
Kate registers new affiliates: Gaston with ID=25 and reference's ID=22,
and Veronica with ID=26 and reference's ID=23 Her new sales are:$15 with affiliate's ID=1,
$5 with affiliate's ID=2,
$6 with affiliate's ID=3,
$5 with affiliate's ID=4<,
$6 with affiliate's ID=5,
$33 with affiliate's ID=12,
$55 with affiliate's ID=17,
and $22 with affiliate's ID=23. |
|
30/3/01 |
New sales and first payments |
Kate registers new sales:$6 with affiliate's ID=1,
$12 with affiliate's ID=3,
$6 with affiliate's ID=4,
$22 with affiliate's ID=6,
$21 with affiliate's ID=9<,
$41 with affiliate's ID=12,
$6 with affiliate's ID=16,
$8 with affiliate's ID=18,
$8 with affiliate's ID=24<,
and $10 with affiliate's ID=26.
|
Sales were increased by 100% ($1,198 per ten days),
and the number of persons (affiliates) involved in sales (at least partially) reached 26.
Copyright © 2002 AdvMathAppl