Referral Example

# A user recruits ten people (10 direct referrals) –
# If on average, each direct referral recruits 3 new users (some will recruit many and some none, but the average is 3 for each level of your network) -- Value of 10 referrals $300
# The user would have 30 indirect users one person removed. – Value of 30 referrals $900
# The user would have 90 indirect users two people removed -- Value of 90 referrals $2,700
# The user would have 270 indirect users three people removed -- Value of 270 referrals $8,100
# The user would have 810 indirect users four people removed -- Value of 810 referrals $24,300
# Total referrals the user would have in the network would be 1,210.



# At an average value of $30 for each referral the total value would be $36,300

It should be noted that the AGLOCO referral system achieves two tasks:

# AGLOCO saves all the costs of marketing its services to potential new users. This is sometimes a major cost many Internet companies face. Other network companies like MySpace, Skype and YouTube also achieve this goal of users telling users, but in those cases users do not benefit in the value created by the growth of the user base.
# Users who help build the AGLOCO network are financially rewarded for doing so. Because most the value of network oriented companies is based on the size of the network, it is AGLOCO’s stated goal that the people building the network share in the value they help create.