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Important Factors in Starting Business
1. Product Market
2. Product Background
3. Product Marketing Strategy
4. Timing
5. Revenue & Earning
** time: 15-30 min
Haven’t we all recommended our friends & family …
• some great restaurants? • some nice holiday destinations? • some excellent hotels to stay in? • some exciting movies? • etc, etc
But have we ever received any commissions from those retailers/businesses???
WHY NOT?
- A marketing practice where businesses employ a systematic approach to reward affiliates who promote businesses’ products/services.
– Widely applied and practiced among e-commerce merchants/businesses and affiliates, esp. in North America, Europe and China
(Report shows affiliates worldwide had earnned up to US$6.5 billion commission through affiliate
marketing in e-commerce in 2006.)
– Affiliate Junction (AJ) is The FIRST Affiliate Marketing Network in Malaysia, offering offline multi-merchant affiliate program through Mykad Smart Shopper Program.
The Solution:
Multipurpose Usage of Mykad (Smart Card)
(Identity Card)
(Driving License)
(Passport)
(ATM/cash)
(Touch N’ Go card)
(Discount Card)
(Affiliate Marketing)
Mykad Flagship application No.50 Officially launched since Nov 2010 (Please refer “More with MyKad” Latest edition, published by MDeC)
How do Affiliates get paid – Scenario #1
2) Enjoy
discounts &
privileges when
shopping
Affiliate
Members (Activated
MyKad Holders)
Retail Outlets
2) Enjoy
discounts &
privileges when
shopping
Retail Outlets
Affiliate
Members (Activated
MyKad Holders)
How do Affiliates get paid - #2
Summary Affiliates
Customers Merchants
Spend with discounts/ privileges
Earn extra RECURRING income
Promote merchants to customers
Enjoy discounts & privileges when shopping
Increase revenues & minimise A&P cost
Ultimate “Win-Win-Win” Situation
Incentivize affiliates
Product: AJ License (A)
• License Fees - MYR 1,000 for 3 years
Benefits & Rewards:
• Renewal fee @ MYR100/year for 4th years onwards
• 1,000 customer referral credits (additional credits available @ MYR50/ 100 credits) and
• Merchant referral credit (Unlimited)
• 1% commission from ALL valid transactions (of referred customers/ merchants)
MARKET • Alternative ways to generate extra Recurring Income are:
– Freelance in MLM, insurances, real estate…
– Invest in stock market, where large capital and high risk are involved
• Now, how many would want a business that generates recurring income?
– TOO MANY!!! Who wouldn’t want?
– Thus the market is HUGE !
Affiliate Junction (AJ) Background •Project owned and managed by the leading affiliate marketing company, I Synergy Universal S/B (ISU),(812120-V) founded by Mr. Lawrence Teo (Group CEO) in April 2008 with RM5mil group authorized capital and RM2.5mil group paid-up capital.
•Corporate office is strategically located at prestigious commercial address in Mid Valley City, KL
• Company is officially awarded as MSC status company since December 2011 via its innovative ICT integration in Affiliate Junction’s Platform
ipade
Corporate Social Responsibility (CSR)
1% from retail transaction which generate by Affiliate Junction will donate to National Cancer Society
Malaysia (NCSM).
Product Marketing Strategy
Affiliate Junction Corprate
Authorized Agency/Dealer
Affiliates (Product)
Merchant + Customer
Increase Retail Transaction & Commission
Register
Register
Register
Current Stage
Produce
*** Only Authorized Agency/Dealer is eligible to sell this product.
Type 1: Standard Dealer (AD)**
Earns $X
Dealer License Fees : RM 10,000
Entitlement: • License valid for 5 years (renewal @ only
RM100/year from year 6 onwards). • 5,000 customer referral credits.
Benefits: • Customer & Merchant Referral Rewards 1% • Affiliate Referral Rewards 20% • Business Development Rewards 2% • Retail Overriding Rewards 75%
** For business entities (companies) only
Affiliate
Earns 75% $X (Recurring)
Bonus 20%
Type 2: Premium Agency (AA)**
Earns $X
Agency License Fees: RM 40,000
Entitlement: • Lifetime license validity • Unlimited customer referral credits.
Benefits: • Customer & Merchant Referral Rewards1% • Affiliate Referral Rewards30% • Business Development Rewards 2% + 10% • Retail Overriding Rewards 100% • Global Affiliate Bonus*** 3%
** For business entities (companies) only *** Insentive paid every Jan & July
Affiliate
Erans 100% $X (Recuring)
Bonus 30%
1) Amazing discounts up to 50% for now
Standard Authorized
Agency (AD)
Premium Authorized Agency
(AA)
Original Fees RM 10,000 RM 40,000
NOW RM 5,500 RM 20,000
*** Disclaimer: All discounts shown are accurate at the time of
press/print, and is subject to evaluations and reviews quarterly at company’s discretion.
2) Incubator Program – AA Only
Monthly 6% from Program’s Turnover (PTO) will be shared equally among all Premium Agency (AA) as AJ business development incentives.
Each AA can received up to RM30,000 from such incentives*
* Disclaimer: All discounts shown are accurate at the time of press/print, and is subject to evaluations and reviews quarterly at
company’s discretion.
Potential Earning of AD Potential Bonus 1 1. Acquire 2 Affiliates (A) a month, hence 24 Affiliates in a year.
2. Among 24 Affiliates, 6 become AD and 6 become AA
Affiliate Referral Rewards = 20% x (12x$1,000)+(6 x $5,500) + (6 x $20,000))
= $ 33,000
Potential Bonus 2: 1. On average, each AD generates sales of $5,500/month and each AA generates
sales of $20,000/month
Business Development Rewards = (6 x $5,500 + 6 x $20,000) x 2%
= $3,060/month
= $ 36,720/year
Potential Earning of AD Potential Bonus 3: 1. Each Affiliate register 500 customers who spend $200 every month
Retail Overriding Rewards = 24 Affiliates x 500 customers x $200 x 1%
x 75% (Retail Overriding rewards)
= $ 18,000/month
= $ 216,000/year (RECURRING)
In this scenario, AD’s potential earnings :
Affiliate Referral
Rewards Business
Development Rewards
Retail Overriding Rewards
Total of Potential Earnings
$33,000 $36,720 $216,000 ≈ $285,720
Potential Earning of AA
Potential Bonus 1 1. Acquire 2 Affiliates (A) a month, hence 24 Affiliates in a year.
2. Among 24 Affiliates, 6 become AD and 6 become AA
Affiliate Referral Rewards = 30% x ((12 x $1,000) + (6 x $5,500)
+ (6 x $20,000))
= $ 49,500
Potential Bonus 2: 1. On average, each AD generates sales of $5,500/month and each AA generates
sales of $20,000/month
Business Development Rewards = (6 x $5,500 + 6 x $20,000) x 12%
= $18,360/month
= $ 220,320/year
Potential Earning of AA Potential Bonus 3: 1. Each Affiliate acquires 500 customers who spend $200 every month
Retail Overriding Rewards = 24 Affiliates x 500 customers x $200 x 1%
x 100% (Retail Overriding Bonus)
= $ 24,000/month
= $ 288,000/year (RECURRING)
In this scenario, AA’s potential earnings :
Affiliate Referral Rewards
Business Development
Rewards
Retail Overriding Rewards
Incubator Program
Global Affiliate Bonus
Total of Potential Earnings
$49,500 $220,320 $288,000 $30,000 3% > $587,000