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by aurbano
3161 days ago
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Referral links are the most amazing financial product I've ever seen. I'll start from the end: Companies get FREE advertising from YOU, and unless you get them an actual customer, they don't pay. Effectively companies are “forcing” you to advertise for free (forced by your desire to "make easy money"), and then they pay you a commission if you get them a paying customer. And you may fail to realise that you are already paying them by placing their ad in your page. Because in order for you to get money, you need to get them a click that ends in a paying customer. You could have pointed that customer to something you owned and theoretically you could have received the full value of their purchase. So losing that is a payment you make in order to "refer" a customer... Its crazy! |
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Companies offer to buy purchasing customers from you. It's up to you if you want to take that deal or not.
> I'll start from the end: Companies get FREE advertising from YOU, and unless you get them an actual customer, they don't pay.
Essentially, commission based sales.
> You could have pointed that customer to something you owned and theoretically you could have received the full value of their purchase.
Along with all the costs of actually selling something, and assuming I have something to actually sell.
Let's phrase regular sales in the same way, and it sounds even worse.
Suppliers are "forcing" you to get stock from them (forced by your desire to "sell products and make money"), and make you pay for it even if you never manage to sell it on! You're paying them directly and have to then store it and convert the customers. The risk is entirely on you as well.
You could have sold things you built entirely from scratch. So all that purchasing cost is a payment you make in order to "sell an item".
Referral links are one of the simplest and most obvious products to me, it's just a middleman. Sell an item and get X, with no upfront commitment or cost.