Instant Profit vs Long Term Gain
There are two types of referral programs in relation to earning money with referrals online, also know as lead generation.
In the first case a referrer is paid by lead a certain amount of money. For this example let’s say $1.00 per lead. The benefits of this type of referral program is that a lead generator doesn’t have to wait long to be paid. Once the member you refer is signed up and completes any requirements such as confirming their account via e-mail or completing some task after becoming a member, you are paid. But, that is the end of the line.
Long Term Pay
The second type of referral program is different, but doesn’t pay as much up front. However, in certain cases, this type program can be more profitable in the long run.
In the second case a referrer earns money directly from the member they referred’s activities in the future. This is a double edged sword because if the member never becomes active you will not be paid.
For the majority of members who for example, join Swagbucks and refer new members, they will earn their referral money directly from the actions of those they refer. In addition of course, to completing offers, surveys, being paid to search, etc.
The difference between the two programs can easily be related to the difference between insurance and selling a product such as a new television. One pays on a monthly basis and the other is a one time action. If you sell someone insurance you make a profit each and every month. It’s reoccurring income.
Another way of doing this, another popular website where you can earn referral income is SurveySavvy. Survey Savvy lets you earn money from everyone that takes a survey. That means that everyone that takes a suvey from here on out you’ll earn money and everyone they refer for two levels.
Well that’s fine but you have to know that most people who sign up probably won’t ever do a single survey. So in the same time that you have 30 new members to either Opinion Outpost vs SurveySavvy you’ll have 30.00 dollars with Opinion Outpost and 30 referrals with Survey Savvy but no money because no one as of yet has taken a survey.
So Whats better? Well it’s hard to say because at some point you’ll find that someone does take an active interest in survey savvy and starts referring people perhaps lots of people and because they offer two tiers you’ll all the sudden start making money potentially even more than you’ve made with Opinion outpost. The effort on either side is the same. One just takes long to generate imcome but that income may last longer and be more in the long run.
Find out for your self and let me know what you think is better.