More economics of AGLOCO

From the Simmons report, all newbs should read the following to get a good idea of what to expect from joining and recruiting members into AGLOCO:

The cost of recruiting new users to AGLOCO can vary. For many users it is simply sending an email to friends or contacts – or talking to them directly. For others it is blog postings or website notices and for some users paid ads on search engines. The privacy and anti-spam policies of AGLOCO and the track record on these issues of Ray Everett-Church (AGLOCO’s Chief Privacy Officer) makes the risk of getting spam, pop ups and other trash as a user a non issue.

In general, given the low level of work needed to recruit new users to AGLOCO and the zero cost in terms of money, the cost/benefit ratio of recruiting new users to AGLOCO seems to be highly favorable. Because there is no limit as to the number of referrals a user can recruit, the upper end on this opportunity could be high (which means it can be worth putting in the effort to promote actively). This analysis was done two weeks after AGLOCO launched and there have been user postings noting referral networks of 4,000 and 5,000 already. At $30 value each this would be $120,000 to $150,000 so far, which means AGLOCO could make some serious recruiting users a high return on their efforts.

 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.