No Bullshit HYIP Blog, A Part of No Bullshit Network

Most programs in the HYI world have some sort of affiliate program with a commission for successful referrals. A recent poll taken on a popular program’s forum showed that the majority of their forum voters overwhelmingly think that referral programs should be abolished. Many claim that only “scams” need referral programs, while others claim that referral programs are what bring down a program.

Every business needs advertising and money for growth. This includes brick and mortar businesses as well as internet businesses. There are many methods for advertising. Word of mouth is probably one of the cheapest and easiest ways to promote a business. The cost of advertising needs to be allocated somewhere, regardless of whether it is allocated to those that sponsor the program or to other advertising methods.

That being said, what does a business need to promote word-of-mouth? An affiliate program has proven to work very well on the internet. Paying a small fee or reward for advertising efforts works. Those wishing to receive a commission spend time promoting and advertising. Responsible sponsors also spend time tracking their referrals, keeping up with any bits of news about the program, updating their referrals and answering their referral’s questions. All of the above helps to alleviate burden on the program’s staff. When there is no affiliate program, a business needs to rely on other means of advertising. Other means of advertising in the HYI world have not proven to be as effective as word of mouth. However, the cost of the referral commission needs to be within the businesses advertising budget abilities. Paying too high of a referral reward drains a business’s resources.

Regardless of whether or not a business uses an affiliate program or other advertising, it lives or dies based on its ability to deliver, e.g. its reputation. Far too many programs that had good affiliate programs died because they couldn’t or wouldn’t deliver and they received the term “scam”, whether they intended to be one or not.

The bottom line is not whether a program has affiliate rewards for successful referrals. The bottom line is that a program needs to deliver what they promise on time and with as few problems as possible. Whether or not a program lives is solely based on its ability to pay members on time, communicate updates timely and resolve any problems in a timely manner. A program having problems is inevitable; how it solves the problems is key to its continued success. Having a referral program or not having one has never made or killed a program.

Note to administrators: TO SUCCEED, PAY YOUR MEMBERS AND PAY THEM ON TIME!

While I am on the subject of growth, I might as well include my opinion on programs going private when they achieve their desired level of membership base. With all of the recent announcements of programs going private, this is a hot topic. There are two reasons for a program to close its doors to new members. The legitimate reason is that the membership base matches the man power required to service the members properly and includes enough members that will continue to feed a reasonable growth of money into the program. The illegitimate reason is that the program is in the midst of an exit and run strategy and wants the influx of new member’s money obtained in the last days before closing. When a program has been reliable for a long time, it’s impossible to tell what the administrator’s motives are. The only hint that it may be for a last grab and run is if the program uses other tactics, such as new offers, increased incentives, and/or increased minimums, in the days and weeks prior to the “We are going private” announcement.

The above is only one person’s opinion. Please leave your opinion, especially if it is different, on referral programs and going private below.

JMO - Sharon

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