An Affiliate is anyone who directly introduces a new user to the World of GoPets. An Affiliate may be a user who has told a few friends of their new experience, or a maven with a highly successful website able to reach thousands of users; to a large internet-based media company with an existing user base in the millions.
Affiliates are free to use a wide range of tools from GoPets such as banner links, the Pet Gadget and customized emails to register users in the World of GoPets. An Affiliate is limited only by their resources and energy as to how much they put into reaching users.
All users when they land at the GoPets landing page are linked with the source Affiliate when using the Affiliate Links (see www.gopets.net/XXXX for more information). Users who discover GoPets from reading a press article or simply by performing their own internet search are considered a GoPets internally sourced user.
The Affiliate enjoys a net revenue share for a term of 365 days from the date of registration that ranges from 5% to 50% as determined by the total spending of the user regardless of whether the user is purchasing Gold Shells or Premium Service plans. This is contrast to Content Providers who earn revenue only on direct Gold Shell purchases of their content.
There is a tiered program for Affiliates that ranges proportionally to the amount of resources and energy that an Affiliate is expending in the process of introducing new users to GoPets:
| Tier Name |
Monthly Bracket |
Net Revenue* |
| from |
to; |
| Green |
$ - |
$ 99 |
5% |
| Pink |
$ 100 |
$ 999 |
10% |
| Silver |
$ 1,000 |
$ 9,999 |
20% |
| Gold |
$ 10,000 |
$ 99,999 |
30% |
| Platinum |
$ 100,000 |
+ |
50% |
Net Revenue for Affiliates is defined as Gross Revenue less the following costs:
C. VAT, payment systems - variable
D. GoPets Operations - capped at 10% net after (a)
E. Content Providers – 50%
Example Scenario:
Jessica is an English teacher in Japan. She sees an editorial about GoPets on a top social networking site in Japan and has clicked on an Affiliate Labeled link to join GoPets.
During the course of one year with GoPets she spends 4,000¥ (approx. $40 USD) in the form of a 995¥ Premium Service and the balance of 3,000¥ in Gold Shells. She received 125 Gold Shells from the Premium Service plan and approximately 400 Gold Shells from direct purchases resulting in a total of 525 Gold Shells.
Over the course of the year she spends 200 Gold Shells on 3rd party games and other forms of content. The rest of her shells (325) she spends directly on GoPets content.
Who got how much of her money?
The convenient store charges approximately 6% to handle the cash transaction from her purchases. So they take 240¥ (or about $2.40).
The Japanese government imposes a 10% VAT. We do not get paid directly from a user, but rather from the payment service provider – thus we need to pay 10% of 4,000¥ . This results in 400¥ (or $4) going to the Japanese government.
Now we have 3,360¥ (or $33.6) to divide between the Affiliate, the 3rd party games providers and GoPets:
From here forward we will internally convert to USD for simplicity.
First we must cover the core costs of the GoPets Operations. This includes paying for the servers, the bandwidth, the electricity, rack space as well as the system engineers and customer service folks to run these operations 24x7x365. To account for this we subtract 10% from the $33.6 or $3.36 to GoPets Operations leaving a balance of: $30.24.
Next are the 3rd party games. To calculate the net shell value we take the net revenue this user has produced to this point $30.24 and divide by her total number of shells she has purchased 525. This results in a net average shell value of 5.76 cents a shell.
200 Gold shells at an average of 5.76 cents each results in a net revenue of $11.52 to be split 50% with the content provider. In other words the 3rd party game provider will take $5.76 of Jessica Smith’s money.
Starting with $30.24 and subtracting out the $5.76 to the 3rd party game Content Provider leaves us with $24.48 to be split with that top social networking site in Japan. We might as well think optimistically and assume that being a top social networking site in Japan that has taken a look over our Affiliate Program that they have decided to include GoPets single-sign-on technology and have effectively attached a GoPets account to each of their users’ existing accounts. Further, they have spent time creating a special new user area full of branded items and finally have staffed that area with some orientation and greeters to make it a truly quality experience for the new user.
The result of these efforts is that they are regularly enjoying the 50% net revenue split that comes at the Platinum Tier level. Thus the $24.48 will be split by 50%, resulting in $12.24 going to the social networking site and GoPets keeping the remaining $12.24.
Here is a recap of what happened to Jessica Smith’s $40:
| Who |
Split |
Nominal rate |
Fraction of applicable revenue |
Balance |
| GoPets User |
($40.00) |
|
|
|
| Payment Provider |
$2.40 |
6% |
100% |
$37.60 |
| Japanese Government |
$4.00 |
10% |
100% |
$33.60 |
| GoPets Operations |
$3.36 |
10% |
100% |
$30.24 |
| 3rd Party Content |
$5.76 |
50% |
38.1%* |
$24.48 |
Japanese SNS (Platinum Affiliate) |
$12.24 |
50% |
100% |
$12.24 |
| GoPets Margin |
$12.24 |
|
|
$0.00 |
*200 out of 525 Gold Shells is 38.1%