Leased Ad Space
LeasedAdSpace Changes - ROUND TWO! (or 2.5...)
Published by Leased Ad Space Team — 7-6-2018 at 12:25 AM UTC
Hey LAS family!
Dan here, and I have the honor of announcing the next set of changes hot on the heels of Richard's email from Tuesday and video from earlier today. Please bear with me as I'm a bit more... wordy... than Richard is, but this is important stuff, so stay with me.
Just to recap...
We are centralizing payment for all LAS products, and also centralizing the paying of commissions to affiliates. This will result in a more traditional "monthly commission run" model that most affiliates are more accustomed to.
Why we're doing this:
- The instructions and steps required for "member to member" payments proved to be a massive hinderance to adoption and conversion rate. As Richard stated, it was just way more friction than the average buyer was willing to tolerate.
- The instructions, and really the need at all, for payments to be manually verified and approved by members proved to be a huge support burden for LAS staff, as the vast majority of members either did not approve payments in a timely fashion, or never approved them at all. That left us in a situation where we had to "guess" whether a payment was actually submitted properly or not.
- Not all members were able to accept every payment provider we supported, leading to "skips". Centralizing commissions entirely eliminates this problem. If you're an affiliate in good standing, you're eligible for commissions. Period. No more skips.
- We, the LAS staff were unable to employ any sale, discount or promotion strategies that would have helped boost sales because we were not involved in the exchange of funds in a "member to member" payment system. Now that we are executing all of the sales and serve as a focal point, we can leverage sales and promotions on your behalf to help entice people to purchase.
What this means:
- Commissions will no longer be paid instantly, nor will they be made "member to member". Commission runs will occur on the 15th of the month for the prior calendar month. Commission payout services are included in the new Terms of Service, and currently include: PayPal, Bitcoin, Solid Trust Pay (limited availability). We plan to work with Payoneer to help automate commissions runs in the coming months.
- Commission rates will change based on the traffic package a member owns. Members who do not own a traffic package themselves will receive 25% commission on all sales (more on this below...). Members who own at least one traffic package, but not the Red Diamond package will receive 50% commission on all sales. Members who own the Red Diamond package will earn 75% commissions on all sales.
- All sales will be subject to a 3% administrative fee to cover processing and network charges related to the exchange of funds (bitcoin fees, CC processing fees, etc.). Commissions will be calculated after this administrative fee is deducted.
- New affiliates (not customers) will be subject to a $10 administrative setup fee to offset the cost of commission tracking, payout, processor and network fees, support, etc. Any member who purchased any traffic package prior to Monday July 9th will have this fee automatically waived. These administrative fees are not eligible for commissions.
- The price of the Pearl Traffic package is changing from $7 to $9.97 to make it more viable after network processing and administrative fees.
Now on to additional changes to the LAS platform!
Free Members Eligible for Commissions
We have received thousands of emails from people who are not able to purchase a traffic package due to financial reasons, but want to get started in internet marketing. We have always positioned ourselves as a "one stop shop" opportunity where even free members can leverage our advertising services and get a web presence and blog to get a start in this industry. This philosophy of enabling the little guys and gals did not carry through to free members earning commissions however. Considering recent changes, we see no reason to limit sales exclusively to members who own traffic packages. The rates will be different, but enabling free members to start to earn money that they can then reinvest in their business seems like a win win scenario to us.
Elimination of Multi-Level Downlines
One of the toughest decisions we've had to make is a radical change to our downline structure. Over the past two years we have come to realize that the multi level nature of our compensation plan had some serious limitations:
- It prohibited us from securing debit and credit card processing capabilities. While we are aware that some MLM businesses operate and accept credit and debit cards, virtually every single payment processor in existence has language in their terms and conditions that severely limit the availability of, or outright ban, multi level marketing businesses from using their services. PayPal, Stripe, Chase PaymentTech... basically every payment processor frowns on MLM commission structures. Some of them provide exceptions in certain cases, but the entire situation is fraught with 'judgement calls' and tainted with the whim of who you deal with at the payment processor. We tried for months with many providers and consistently were rejected based on our compensation plan. If we wanted to accept credit cards, and didn't want to risk being shut off without notice in a month or two, we had to make a change.
- Perhaps more importantly, we found that the structure of our plans resulted in a serious demotivation of the member base. Members saw no immediate or direct benefits from acquiring new leads beyond their 7th. Once their first tier filled up, they were at the mercy of the people below them, and their downlines willingness to upgrade. As sponsors disengaged from their downlines because it didn't seem to benefit them to work with them or continue to market LAS products, their downlines willingness to upgrade decreased in kind. This produced a vicious cycle of demotivation that led many of our originally strongest members to basically give up.
- The way payout worked in the original comp plan was flat out hard to understand. We answered the question "why didn't that sale go to me?" thousands of times, and each time the person posing the question came away feeling cheated, even though we had tons of documentation on how the plan worked. At the end of the day it was overly complex and left affiliates with a negative vibe that we just don't think is healthy for our business.
Now, before anybody freaks out and says "you're nuking my downline!", no... we really aren't. Since launch, when new members signed up under an affiliate ID, we kept that affiliates referral id and stored it in the database even though we may have placed that new member under someone deeper in the downline. This means we know exactly who brought who in to the system regardless of where they ended up in the multi level matrix. While we are eliminating the "multi level" aspect, everyone will keep every single person they personally referred to LAS. People who were actively marketing and getting personal referrals will keep those referrals under the new system. If anyone was "riding the coat tails of their upline" and not actively marketing themselves, they will need to up their game and work at getting personal referrals.
The next logical question is "what sales am I 'entitled' to now?" This is in relation to point 3 above. Whether or not you were eligible for a commission on a sale depended on how far down the buyer was in your downline, and what numeric package number they were buying. No more. You are now eligible for a commission on EVERY SINGLE SALE of EVERY SINGLE PRODUCT that someone you personally referred purchases, as long as you are an affiliate in good standing. Good standing is explained in the new terms of service for affiliates but basically it simply means that you stay engaged with the LAS community (driving traffic, logging in, using your advertising, etc.) and don't disappear on us for prolonged periods of time.
This includes sales of ParaAds! Every product we offer is eligible for commission. Opening commissions on ParaAds also enables unlimited repeat sale potential that was previously impossible because of the "only purchase once" nature of the traffic packages. Interestingly, it also makes marketing LAS DIRECTLY TO the LAS membership and your downline a viable, and profitable strategy. We saw so many people try and use their LAS advertising to market TO the LAS membership, that we thought, "hey, why shouldn't people be able to do that?" The lack of repeat-purchase-eligible products made that a no go, until now.
Most importantly, moving to a 1 tier affiliate program allows us to secure payment processors much more easily. In fact, PayPal, at least for now, IS BACK and available to use to purchase LAS Products. PayPal can be rather capricious in their dealings with the IM industry, but we feel strongly that our changes put us well within their terms of service. Additionally, we've enabled guest checkout with PayPal which basically means we can take debit and credit cards starting Monday. We're also going to be implementing Stripe in the coming weeks, for a more seamless checkout experience using debit and credit cards.
We know that some of these changes are sweeping in scope, but we've thought long and hard about how to best reward our most active members and move the platform forward in a somewhat tumultuous time in Internet and Network Marketing. We feel strongly that these changes will greatly benefit all of our members, customers and affiliates alike!
To your success!
Dan Robb & Richard Weberg
About Leased Ad Space Team
Every business, website, individual, entrepreneur needs traffic online. Without it, they make nothing.. And this is why we created Leased Ad Space to give people more real traffic from a variety of methods, including search engine traffic.. See, Leased Ad Space upfront may look like many other traffic platforms, but what the site actually does is very unique. Not only do you get banner, text, and solo ads, but the solo ads cross post to a blog, and every single solo ad creates a unique page that gets indexed by the search engines. So the more customers of the site there are, the more solo ads that get posted, and the more pages that get indexed in the search engines, all on autopilot. We never delete these pages, they are permanent. …And we give every customer a profile page, where they can post as much of their own content to it as they want to, so every one of these articles post to the traffic platform as well. This again equals more pages being indexed by the search engines. More visitors for our customers from the search engines Everyone's banner and text ads then get displayed on every one of these pages, so literally we deliver your ads on thousands of pages all across the internet. And lets not forget that every traffic package purchase is only a one-time cost, and when you purchase your first $7.00 traffic package, you will be able to send 1 solo ad to the entire subscribed database, every 28 days for the duration of your membership..No matter how big the site gets, you will have no further cost to do so at that frequency.. Want to send a solo ad more often, just simply purchase the next traffic package. Each traffic package comes with more benefits.. As a marketer, we wanted these traffic packages to stand on their own, you can not get these benefits for the price anywhere online for such a low cost. Get Your Real Humans Here, While Supplies Last! :) http://leasedadspace.com To your success Sincerely, The Leased Ad Space Team