Monday, January 29, 2007

Why does AGLOCO use a referral system?

I saw this on the AGLOCO company blog and thought others would be interested in it:

The most valuable part of AGLOCO is its Members. By referring others to AGLOCO, you provide them with value and for that, AGLOCO thinks you should get some of that value you provide.

It makes sense. Think about YouTube. The first, most active users were on the site when the software was buggy and there were few videos available, but their Membership (and referrals to others) is what made the site a success. When it was sold for $1.65 billion, how much of that did these first users see? Nothing. With the AGLOCO referral system, Members get more for building the network.


Jeanne
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