Sunday, March 13, 2011

How Users Are Rewarded With Varolo

In this post I want to break down how you the member is rewarded through Varolo.  Just keep these three things in mind as you read through the post.  First, Varolo is 100% free for the user, advertisers pay for everything.  Second, Varolo does not require you to purchase anything.  Third, Varolo doesn't require you to sell anything.  With Varolo you are rewarded for watching commercials.

Varolo rewards it's members through several different mechanisms.  These include points, the weekly sweepstakes, and village earnings.  So lets get started looking at how you can be rewarded.

Points

This is the simplest way for you to earn rewards.  Every time you watch a commercial, Varolo rewards you with points.  The average commercial right now gets you one point per view.  But there are several commercials that earn you as many as five points per view.  Also, as members in your village (Varolo's term for your social network) watch commercials you can earn extra points from them.  So as your village grows, the number of points earned each week grows, and you can cash out points for prizes that much faster.

Weekly sweepstakes

Every commercial you watchs gives you one entry into the weekly sweepstakes.  Now keep in mind that Varolo is growing the weekly sweepstakes by $25 dollars per week, at the time of this post.  So this is a pretty good incentive to watch every week.  And just like with points, you village helps out with this by what Varolo calls splash up.  Basicly if anyone in your village wins the weekly sweepstakes Varolo gives them 100% of the jackpot and you get 10% of the value.  So, a member of your village gets the $300 dollar jackpot and you recieve $30 for them being in your village.  Again, it pays to grow your village.

Village Earnings

With Varolo up to 20% of ad revenue gets payed out to the members.  In otherwords, as people in your village watch commercials you and members of your village can see up to 20% of the cost per view.  So people in your immediate village, or 1st tier, watch a commercial, you see 8% of the cost per view for that commercial.  The percentage goes down by 2% as the village member watching, goes down in tiers.  Here is the break down, straight from Varolo.

Tier 1 = 8%
Tier 2 = 6%
Tier 3 = 4%
Tier 4 = 2%
All four tiers = 20% paid out to village members

As of this post, Varolo's cost per view is between 1 and 5 cents.  But Varolo currently has about 55,000 members.  As membership grows the biding will go up and cost per view will increase, which means an increase in village earnings.

So, how about a real world check on Varolo's potential that anyone can do.  And lets use a social network vehicle that we all know,  Facebook.

Facebook has flat, image and text based ads.  Keep in mind Varolo is a streaming video ad.  If you go to your Facebook account, you can build your own ad.  As you build, can choose which groups you think will be interested, and Facebook will let you see the potential number of members, who will see your ad.   You also get to choose the time of day you want it to run and you can choose how much a day you wish to spend.

When I built my mock up Varolo ad for this experiment,  I left the catogories on face book at default.  This meant that 4 milion possible members will see my ad run at noon.  With a budget of $50 per day and a estimated cost of $2.18 per click.  That means $50 buys me 22 clicks, and then my add is pulled. Those 22 people are the only ones I can get that day to view my product.  Remeber Facebook is a flat image with a limited text file to intice people to go to your site and check out a product.

With Varolo $100 buys an advertiser 10,000 views, or over 9 hours of commercial air time.  This is set at 1 cent per 30 second commercial.  That means $100 dollars gets an advertiser 10,000 garunteed views.  With feed back on how people rated the ad and if they were interested.  These numbers are straight from the companies own site.

So you can see as membership in Varolo grows the potential for ad revenue growth increases.  Also keep in mind that 4 million is only about 2% of the 250 million adults in America.  So imagine what the bidding by advertisers will be when Varolo grows to just 1% of the population in the U.S., and 1% isn't even that high a number.

So if your not a member or Varolo and would like to be, join my Varolo village, by clicking any of the Varolo links in this post.  And lets start growing your village together.

Join Varolo and get rewarded for watching commercials.  Varolo takes about 10 minutes a day, and is 100% free to members.  So join my Varolo village today. http://www.varolo.com/village/Harvey75

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