A lot of folks have asked this question because how can a company pay commissions without charging a membership fee. You really need to have a good understanding of the business model and I have to say it took me a few days to get it. This was before we had the videos that are available now. Please take the time to watch the video under Groupon Vs The Customer Advantage article on our site.
Now John Milanoski, the owner, challenges anyone to find a whole in this business model, and I haven’t been able to find one. It’s completely free to join and market and they will never ask for a dime from it’s members.
For businesses, they can use their services with no cash out of pocket and get paid after the campaign is done.
As a free member you will get deals for your area starting in the States first but plans to grow around the globe as the membership grows. For those outside the States, you can promote the company to others and earn commissions. There just won’t be offers for your area to begin with.
The only possible catches I could find are:
1) Needs Growth – if the company doesn’t grow it’s membership to a large number then it would have much to offer as far as an advertising network for businesses. But, there are no signs of that. In fact, it is the complete opposite. The first month was October where they only had a few hundred members. In November they went to a thousand or so. This is when I first got involved. It has now grown to over 50,000 members and these numbers should explode when the offers start coming in. And then even more when commissions start getting paid. So growth shouldn’t be an issue.
2) Interest from Businesses – The company needs interest from companies that are willing to use their network, but talking to the communications director for the company this isn’t going to be a problem. They already have huge interest not only from local businesses but also national chains as well. Therefore, I feel assured this won’t be a problem.
3) Solid Computer Network – The company needs to be setup to handle the projected rapid growth and from all investigations they have prepared to handle any type of spikes in growth where if needed they can expand their servers to provide additional support. They appear well prepared here as well.
4) Support and Customer Reps – They will need to have a number of support staff to answer customer questions and also reps to work with companies using their services. To date, they’ve been handling support issues in a timely manner. They will be hiring and training a number of staff in the next few months and on a continual basis as the company grows. This is still to happen but I believe they are well prepared to expand.
5) Global Payment System and Tracking – They need to be able to handle payments for offers, send payments to companies and pay out commissions to affiliates around the globe since they allow anyone to market this even though offers will just be in the States to start. I haven’t gotten exact details on their banking setup but I’ve been told everything is on track to be able to handle sales and payments. They feel confident so I’m guessing they’ve gotten everything setup to go.
Beyond those questions that seemed to be addressed, I can’t really find holes in this plan and would like others to see what they think. Feel free to email or comment.
If you aren’t in yet then join here and check out all the information in the members area. It’s completely free and they won’t ever ask charge for anything.
Yours for Sucess,