ViralXS.com: Referral Marketing Tool


Objective:

To drive user acquisition for VCCrowd by offering free shares in companies within our portfolio, using a viral referral system.


ViralXS.com will manage these campaigns, allowing us to swap companies and adjust share incentives to find the most effective combination.


Campaign Flexibility: Swapping Companies & Shares

Key Feature: ViralXS.com should be designed to allow us to easily replace the company shares being used as referral incentives. Whether it's Happy Drinks Group, Speedshop Productions Ltd, or Total Environmental Solutions, the system should be adaptable to run campaigns with any company in our portfolio.

  • Replaceable Company Shares: ViralXS will allow us to select any company from our portfolio for the referral campaign. Shares in different companies can be offered as incentives based on their availability and appeal.
  • Adjustable Share Distribution: The system should allow us to adapt the number of shares offered at each referral level. For example, Happy Drinks Group shares might be distributed as 5 shares for direct referrals, while Speedshop Productions Ltd could offer 10 shares for direct referrals. etc.
  • Run Multiple Campaigns: ViralXS could allow us to run several campaigns in sequence, each using a different company and share distribution. This will help test which campaigns resonate best with our audience.

Campaign Overview

Guest and Member Roles:

  • Guest: A user who joins ViralXS.com and creates a free login account. Guests can invite others, earn shares, and participate in the referral campaign. Guests at ViralXS do not get access to VCCrowd unless they become a member.
  • Member: A guest who upgrades to VCCrowd membership (for simplicity, we would focus purely on £39/month LITE membership to reduce friction of sign up). Upon upgrading, members receive a share bonus (e.g. 250 shares) and gain access to all VCCrowd benefits. Once they are a member, they have the option of upgrading in the future to any of the membership levels available.

Sign-Up Incentive:

Every new guest who signs up through ViralXS.com receives free shares in the current campaign’s company (e.g., Happy Drinks Group, Speedshop Productions Ltd). 


Referral System

  • 5 Invitation Links: Guests or members receive 5 unique invitation links to invite others. These links expire after 5 days, creating urgency.
  • Bonus Invitations: If a guest or member uses all 5 invitation links within 5 days, they unlock 25 additional invitation links with no expiration.

Share Distribution Across Degrees of Separation (Customizable)

For each new verified guest, the share distribution can be customized based on the current campaign:


Degree of Separation

Shares per Invitee (Example, customisable)

1st Degree (Direct Guests)

5 Shares

2nd Degree

4 Shares

3rd Degree

3 Shares

4th Degree

2 Shares

5th Degree

1 Share

6th Degree

1 Share


ViralXS.com Portal and Back-Office Integration

User-Friendly Dashboard: Participants can track key data within a minimalistic and clear dashboard in the ViralXS.com portal and VCCrowd back office (for active participants). The information displayed will include:

  • Personal Invites (1st Degree Only): Users will only see the email addresses of their direct invitees (1st degree) to comply with GDPR.
  • Downline Overview: Users will be able to see the number of people on each level in their referral chain (2nd to 6th degrees) and the number of shares earned per level.
  • Total Shares Earned: Display the total number of shares awarded in the current campaign.

Urgency: 100-Share Upgrade Bonus + Matching Bonus

  • When a guest upgrades to VCCrowd membership, their upline is notified and has 24 hours to upgrade and receive a matching 100-share bonus.
  • The upgrading guest receives 100 bonus shares (or the number customized to the current campaign).
  • If the guest upgrades within the 24-hour window, they receive a matching 100-share bonus, giving them a total of 200 bonus shares (or a customizable equivalent).

How the 24-Hour Upgrade Opportunity Works

When any guest in the ViralXS network upgrades to VCCrowd membership, it sets off an exciting 24-hour window for others in their upline to act. Here’s how it works, and how it can lead to a cascading effect:

  1. Upline Notification:
    • When a guest upgrades to a paid VCCrowd membership, everyone in their upline (up to the first paying VCCrowd member) is notified via email.
    • This is a significant opportunity for those in the upline who may not have personally invited this guest. They have the chance to benefit from the upgrade even if they didn’t directly refer the person.
  2. 24-Hour Matching Bonus Opportunity:
    • All upline members have 24 hours to upgrade their own account and receive a 100-share bonus, matching the bonus the original upgrading guest earned.
    • Multiple people in the upline can decide to upgrade within this window and receive the 100-share bonus, or an amount customized based on the campaign.
  3. Original Guest's Extra Bonus:
    • The guest who initiates the upgrade (and triggers the notification) gets an added incentive. If they upgrade within the 24-hour window, they receive a matching 100-share bonus, bringing their total to 200 shares (100 for upgrading and 100 as a matching bonus).
  4. Securing Affiliate Earnings:
    • Upline members who upgrade during the 24-hour window not only receive the share bonus, but also secure the upgrading guest as their direct referral in the VCCrowd affiliate program.
    • This means they could start earning monthly affiliate commissions from someone they didn’t personally invite—potentially generating a continuous stream of income for as long as that person remains a paid VCCrowd member.
  5. Cascading Effect:
    • The upgrade process can create a cascading effect. As more people in the upline upgrade, each one triggers new emails to notify their own upline that they are now at risk of missing out on bonus shares and affiliate commissions.
    • This could cause even more people to upgrade in quick succession, as nobody wants to miss the opportunity to lock in bonus shares or lose out on potential affiliate earnings. The cascading effect increases the excitement, with every upgrade creating urgency and new opportunities for those in the network.
  6. Why This Is So Powerful:
    • At any time, anyone in the ViralXS network can trigger this 24-hour window by upgrading. This keeps everyone actively engaged and aware that they could receive a notification at any moment, offering them the chance to benefit from upgrades in their downline.
    • The potential for cascading upgrades creates a sense of urgency and fear of missing out (FOMO), encouraging more people to upgrade quickly to secure shares and commissions.

Affiliate Commissions: Incentive to Upgrade

Upgrading to VCCrowd membership unlocks the opportunity to earn monthly affiliate commissions. ViralXS campaign participants could receive commissions from individuals they didn’t personally invite, creating an additional incentive to upgrade.


Compounding Share Growth Example (Customizable)

Depending on the company being promoted, share accumulation could vary. Below is an example using the Happy Drinks Group model, which can be adjusted for different companies:

Degree of Separation

Guests Invited

Shares Awarded

1st

5

25

2nd

25

100

3rd

125

375

4th

625

1,250

5th

3,125

3,125

6th

15,625

15,625



Campaign Deadline and Share Pool Limit (Customizable)

  • Campaign End Date: Set a specific end date for each campaign, giving participants a reason to act quickly.
  • Total Share Cap: Limit the number of shares available per campaign (e.g., 1 million shares), encouraging quick participation and reinforcing scarcity.

Why ViralXS.com Is Separate from VCCrowd

  • Clear Separation: ViralXS.com manages share rewards and referrals separately from VCCrowd’s main services, ensuring transparency and reducing regulatory risks.
  • No Cost Participation: ViralXS is free for participants, eliminating concerns about it being a pay-to-play model.
  • Multiple Campaigns: ViralXS will support running multiple campaigns with different companies, allowing us to test various offers and find the most successful combinations.

Key Message for Prospective Guests and Members

“Join for FREE, invite others, and receive FREE shares. But hurry - the number of shares we're giving away is limited!”



Additional Notes added 23-10-24:

Technical Notes for the Development Team (ViralXS.com and VCCrowd Integration)

The ViralXS platform will allow guests and members to accumulate free shares, but they will need a mechanism to sell these shares. Below are the additional technical requirements for implementing a simple "Stock Trade" option, along with other necessary features related to share management and platform engagement.

1. Stock Trade Option for ViralXS Members

Members on ViralXS.com will be able to list their shares for sale via the internal VCCrowd trading facility. However, they will only be able to sell shares—not buy shares—unless they choose to upgrade and become a paid VCCrowd member.

Features to Implement:

  • Stock Trade Option:
    • Add a "Sell Shares" button within the ViralXS.com member dashboard.
    • This option will allow users to offer their Happy Drinks Group shares for sale via VCCrowd's internal trading platform.
  • KYC Requirement:
    • Members must complete Know Your Customer (KYC) verification before they can list shares for sale.
    • Once KYC is approved, they gain access to the Stock Trade option.
    • Display a clear "KYC Required" message if members attempt to sell shares without completing KYC.
  • Listing Shares for Sale:
    • Allow members to specify how many of their shares they want to list for sale.
    • Add a notification that informs members of the minimum selling threshold (if applicable) and that the sale may not be guaranteed.

2. Incentive to Join VCCrowd for Full Trading Access

To further incentivize ViralXS members to upgrade to VCCrowd membership, make it clear that paid VCCrowd members have access to buy shares, in addition to selling them.

Implementation Points:

  • Upgrade Incentive Messaging:
    • When ViralXS members access the Stock Trade option, display a message like:
      • "To unlock full access, including buying shares, consider upgrading to VCCrowd membership."
    • Ensure that this option is clearly visible and easy to understand.
  • Upgrading to VCCrowd:
    • Provide an easy way to navigate from the ViralXS dashboard to VCCrowd membership sign-up for those interested in becoming full members.

3. Inactivity and Account Management

To manage inactive accounts and reclaim unused shares, implement a system to close inactive accounts after 30 days of no login activity and reabsorb their shares back into the company’s treasury.

Features to Implement:

  • Inactivity Warning Email:
    • Automatically trigger an email notification after 25 days of no login activity.
    • The email should warn members that their account will be closed, and their shares reabsorbed, if they do not log in within the next 5 days.
  • Account Closure:
    • After 30 days of inactivity, close the member’s ViralXS account and reclaim their shares back into the treasury.
    • Ensure that shares are effectively removed from their account and transferred back to the treasury automatically.

4. System Integration Between ViralXS and VCCrowd

  • Ensure ViralXS and VCCrowd platforms are integrated seamlessly for the Stock Trade functionality, allowing members to list their shares from ViralXS through VCCrowd’s internal trading platform.
  • The KYC status on ViralXS must sync with the VCCrowd system to ensure only verified users can trade shares.

Summary of Technical Requirements:

  • Stock Trade Option for ViralXS members to sell shares.
  • KYC verification required before listing shares for sale.
  • Clear incentive messaging for members to join VCCrowd for full trading access (including buying shares).
  • Inactivity management system that triggers a warning email after 25 days of inactivity and closes the account after 30 days, with shares reabsorbed into the treasury.
  • Ensure system integration between ViralXS and VCCrowd for seamless trading operations.

These features will enhance the user experience on ViralXS, incentivize membership upgrades to VCCrowd, and allow for efficient share management and trading.

Is this viable?

Step-by-Step Growth and Share Distribution

Step 1: Guest Growth and Share Distribution

The campaign starts with 10 active VCCrowd members, each referring 3 new guests every 5 days. The viral referral process will lead to rapid network growth. Here's how the growth and share distribution work over time:

Guest Growth Over Each 5-Day Period:

  • Day 5:
    • 10 members refer 3 guests each = 30 new guests.
    • Total shares issued for 30 new guests = 30 guests × 21 shares = 630 shares.
  • Day 10:
    • 30 guests refer 3 guests each = 90 new guests.
    • Total shares issued for 90 guests = 90 guests × 21 shares = 1,890 shares.
  • Day 15:
    • 90 guests refer 3 guests each = 270 new guests.
    • Total shares issued for 270 guests = 270 guests × 21 shares = 5,670 shares.
  • Day 20:
    • 270 guests refer 3 guests each = 810 new guests.
    • Total shares issued for 810 guests = 810 guests × 21 shares = 17,010 shares.
  • Day 25:
    • 810 guests refer 3 guests each = 2,430 new guests.
    • Total shares issued for 2,430 guests = 2,430 guests × 21 shares = 51,030 shares.
  • Day 30:
    • 2,430 guests refer 3 guests each = 7,290 new guests.
    • Total shares issued for 7,290 guests = 7,290 guests × 21 shares = 153,090 shares.

Total shares issued by Day 30:
630 + 1,890 + 5,670 + 17,010 + 51,030 + 153,090 = 229,320 shares.

This leaves 770,680 shares remaining.

Step 2: Upgrade and Additional Share Distribution

At a 3% upgrade rate, we can estimate how many guests will upgrade to paid VCCrowd memberships and how many shares will be distributed for these upgrades.

  • By Day 30, the total number of guests is:
    • 10 + 30 + 90 + 270 + 810 + 2,430 + 7,290 = 10,930 guests.
  • Upgrades at a 3% rate:
10,930 guests×3%=328 upgrades.

For each upgrade, 200 shares are distributed (100 to the upgrading guest and 100 to their upline). Thus, the total number of shares distributed for upgrades is:

328 upgrades×200 shares=65,600 shares.

Total Share Cost by Day 30:

  • Shares for new guests: 229,320 shares.
  • Shares for upgrades: 65,600 shares.
Total shares used by Day 30=229,320+65,600=294,920 shares.

This leaves 605,080 shares remaining after Day 30.

Step 3: Viral Growth After Day 30

Assuming the same referral pattern continues after Day 30, here’s what the growth and share distribution look like in subsequent periods:

  • Day 35:
    • 7,290 guests refer 3 guests each = 21,870 new guests.
    • Total shares issued for 21,870 new guests = 21,870 guests × 21 shares = 459,270 shares.

Step 4: When Does the Share Pool Run Out?

After Day 35, the total shares used are:

294,920 shares (by Day 30)+459,270 shares (Day 35)=754,190 shares.

This leaves 245,810 shares remaining after Day 35.

Assuming continued growth, these remaining shares would be enough to cover:

245,810 shares=11,705 additional guests.

With 21 shares per new guest, the remaining share pool would be exhausted shortly after Day 37.

Final Results:

By Day 37, the 1 million shares will have been fully distributed. Here’s a summary of the numbers:

  • Total number of guests: 39,820.
  • Total number of upgrades (at 3% rate): 1,195 new paying VCCrowd members.
  • Total shares distributed: 1,000,000 shares.

Viability of the Campaign

Marketing Costs

The total marketing cost is based on the 1 million shares distributed, with each share costing £0.01 (1p). The total marketing cost is:

1,000,000 shares×£0.01=£10,000

Revenue Generation

Each new VCCrowd member generates £15 in revenue. With 1,195 new paying members, the total revenue generated is:

1,195×£15=£17,925

Net Profit Calculation

The net profit from the campaign is:

Revenue−Marketing Cost=£17,925−£10,000=£7,925 net profit.

Conclusion

  • Total guests added: 39,820 guests.
  • Total new paying VCCrowd members: 1,195.
  • Total shares distributed: 1 million shares.
  • Total marketing cost: £10,000.
  • Total revenue generated: £17,925.
  • Net profit: £7,925.