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IP.Nexus Dev Update: Referrals

IP.Nexus is designed to give administrators the tools to monetize their community. Not only is this about selling products and services (or accepting donations) but promoting your site as well.
Many customers have asked us about a referral system. Until IP.Nexus, there would have been little incentive for members to use such a system. With IP.Nexus, not only can members refer their friends using banners you create, but they can receive commission on products and services that members they refer purchase through IP.Nexus.


You can enable referrals and configure the commission percentage in the Admin CP.


You can also set up the banners that members can use.

If you don't set any up (or in addition to any that you do), a simple text link will be available.
Banners can be uploaded images, or you can supply an image URL.


In the Client Area, members can view all the banners you've set up and the HTML and BBCode to display them.


If somebody then clicks a banner posted on a website by one of your members and registers on your community, IP.Nexus will create a link between the two members.
If that member then proceeds to make any purchases, and you have defined a commission percentage, IP.Nexus will award commission to the referring member in the form of account credit (we will discuss account credit in a future blog entry).

The customer page in IP.Nexus indicates who a members was referred by and any members they have referred. In addition, you can see how much commission a members has earned through referrals:

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Does this support a branching tree like arrangement of referrals?

Like let's say member Bob gets Jane to sign up and I have direct referrals get 10%. Let's say Jane gets Candy to sign up. Candy purchases a product or service. Jane gets 10% of that sale. What about Bob? Would it be possible to say that a sub-referral generates 1% or 2.5% or however much I want?

Also is it possible to manually assign or adjust who the referral was? Say Jane signs up and a few minutes later contacts me saying that Bob referred them but they manually visited the site and either forgot to put that members name down or put down the wrong name.

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Oh also, would this be for all sales or just within a time period? Is that configurable? Say someone wants to have a referral system but have the benefits of referrals expire after a year...

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[quote name='Wolfie' date='10 June 2010 - 11:10 AM']
Like let's say member Bob gets Jane to sign up and I have direct referrals get 10%. Let's say Jane gets Candy to sign up. Candy purchases a product or service. Jane gets 10% of that sale. What about Bob? Would it be possible to say that a sub-referral generates 1% or 2.5% or however much I want?


That's pyramid selling and such a scenario would best be avoided.

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[quote name='Wolfie' date='10 June 2010 - 04:10 AM']Does this support a branching tree like arrangement of referrals?

Like let's say member Bob gets Jane to sign up and I have direct referrals get 10%. Let's say Jane gets Candy to sign up. Candy purchases a product or service. Jane gets 10% of that sale. What about Bob? Would it be possible to say that a sub-referral generates 1% or 2.5% or however much I want?

Also is it possible to manually assign or adjust who the referral was? Say Jane signs up and a few minutes later contacts me saying that Bob referred them but they manually visited the site and either forgot to put that members name down or put down the wrong name.

I would say yes for that very reason. These are just highlights not the main product so keep that in mind there are many other things that would be in their that they can't go over all of it in one blog post.

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[quote name='Hunting insects...' date='10 June 2010 - 07:49 AM']
That's pyramid selling and such a scenario would best be avoided.


I would think that if members know that they can benefit from referrals of their direct referrals, then they would be encouraging them to get their friends to join, so that they gain a benefit if one of those friends joins. Otherwise, once they've gotten all their direct referrals, they might feel it's not worth any extra effort to try to get more. However if there's a benefit from a subreferral, then there's encouragement to be open about it and to get others to bring in referrals as well.

So why should it be avoided?

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[quote name='Wolfie' date='10 June 2010 - 06:11 PM']
So why should it be avoided?


Because the process is endless and ultimately only a few people at the top of the pyramid benefit - a scenario that is likely to cause resentment among the majority membership who benefit little if at all. AND, dependant upon how the system is implemented by the owner of the site and the country where it is based, it is quite possibly illegal.

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Is it possible to have different commission rates depending on what usergroup the member who are referring is in? Say Tanax is a regular member, he refers Rikki and gets 10% commission on all items Rikki purchases. Say Tanax instead is a premium member, he refers Rikki and gets 15% commission on all items Rikki purchases.

Obviously, if Tanax gets downgraded to a regular member from premium member, any future purchases any of his referrals makes will only commission him 10% unless he upgrades to a premium member again.

(Oh and yes, I know I'm speaking about myself in 3rd person - I'm not schitzofrenic)

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[quote name='Hunting insects...' date='10 June 2010 - 02:39 PM']
Because the process is endless and ultimately only a few people at the top of the pyramid benefit - a scenario that is likely to cause resentment among the majority membership who benefit little if at all. AND, dependant upon how the system is implemented by the owner of the site and the country where it is based, it is quite possibly illegal.



[quote name='Rikki' date='10 June 2010 - 03:36 PM']
A referral tree like Wolfie mentions isn't a pyramid scheme. However, it also isn't an IP.Nexus feature right now.



[quote name='Tanax' date='10 June 2010 - 04:52 PM']
(Oh and yes, I know I'm speaking about myself in 3rd person - I'm not schitzofrenic)

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[quote name='Wolfie' date='10 June 2010 - 08:11 AM']
How so?

I would think that if members know that they can benefit from referrals of their direct referrals, then they would be encouraging them to get their friends to join, so that they gain a benefit if one of those friends joins. Otherwise, once they've gotten all their direct referrals, they might feel it's not worth any extra effort to try to get more. However if there's a benefit from a subreferral, then there's encouragement to be open about it and to get others to bring in referrals as well.

So why should it be avoided?


The costs can actually get to be too much.

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[quote name='ikillbill' date='11 June 2010 - 08:00 AM']
is it cookie based? how long is cookie validity?

meaning if users purchase in X days, commisions still count


It is cookie based.
The expiry date we set is one year.

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Or maybe it's cookie based as Mark just mentioned. :lol:

Req: For it to be stored in the database, so that it's possible to look at a history of who was referred by who (and who referred who), as well as being able to determine our own length of benefits from a referral. At least for referring members who join the site. If they're already a member, then I can see the benefit of the cookie idea.

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Oh it will be stored in the database once the member actually registers of course (otherwise some of the screenshots I showed wouldn't be possible).
But I assumed the question was how long between clicking the link and registering will it still remember who referred them.

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[quote name='Tanax' date='10 June 2010 - 10:52 PM']
Is it possible to have different commission rates depending on what usergroup the member who are referring is in? Say Tanax is a regular member, he refers Rikki and gets 10% commission on all items Rikki purchases. Say Tanax instead is a premium member, he refers Rikki and gets 15% commission on all items Rikki purchases.

Obviously, if Tanax gets downgraded to a regular member from premium member, any future purchases any of his referrals makes will only commission him 10% unless he upgrades to a premium member again.

(Oh and yes, I know I'm speaking about myself in 3rd person - I'm not schitzofrenic)


I always wonder how my comments always gets unnoticed :P
Any comments on this?

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