The purpose of the referral program is to incentivize people to bring in more people. It compares to a Multi-Level-Marketing (MLM) scheme with the difference of having only 1 level where referred individuals can opt-out by upgrading their account to a Life-Time Member (LTM). Every life time member, can get a cut of the fees based on child accounts linked to ours via referral.
LocalCoin has several different kinds of accounts:
- Basic Account, and
- Lifetime Member.
Basic Accounts are free, but do not qualify for the referral program, nor any cash back on transaction fees.
Lifetime Members pay an upgrade fee and earn 80% cash back on every fee they pay. They also qualify for 80% of the fees paid by Basic Accounts they refer to the network. These 80% can be split among the registrar, that actually registers the accounts, and an affiliate referrer, that brought in the new user.
In Q1/2016, the anual membership has been removed from the code base and no longer exists. References to this kind of memberships can be safely ignored.
The referral fees are controlled by the blockchain and are distributed like this:
- 20% go to the network
- 80% go to the referral program
- of this 80%, x% go to the registrar
- of this 80%, 100%-x% go to the affiliate referrer
For many cases it may make sense to upgrade the account even though you don’t want to participate in marketing at all simply for the reasons to get a cashback of 80% of the fees you pay for your own transactions!
What to do?¶
If you want to participate in the referral program, you need to have a life-time member account, first! Then you can bring in new users by
- running your own faucet and actually register new accounts (will give you 80% of all the fees of those minus a fraction that you decide to give to affiliates (the referrers)
- referring people to a hosted wallet that offers you a cut of the fees as an affiliate.
In this case, most hosted wallets add your account as affiliate if you provide the following link structure to peoplehttps://<url>/?r=<your-account> Example: https://wallet.localcoin.is/?r=blabla1
<url>being LocalCoin wallet domain
wallet.localcoin.isor the name of our your own domain name like
yourdomain.comwhere you run your own LocalCoin wallet UI.
<your-account>being the name of your LocalCoin Lite-Time Member account.
If you want link to pages with in the wallet, e.g. a particular decentralized market, you need to have the
?r=parameter before the
When an Basic Account pays $100 to become a Lifetime Member, $50 is paid to their Referrer, $30 is paid to the nearest Lifetime Member, and $20 is paid to the Network. After this point the Lifetime Member becomes its own referrer and nearest Lifetime Member and its prior Referrers no longer get any revenue from this user.
Claiming Referral Bonus and Cashback¶
If you have a life time member account and
- already paid some fees, or
- have referred people that paid some fees,
you can withdraw them in the “Vesting” tab of your account.