Sunday, February 05, 2006

Adsense's Domino Effect!

How Adsense will end up paying Thousands of dollars instead of 100 $

One of Internet's most popular Advertising programs, Adsense (Google's) had introduced the new referral program recently.
As per the new terms, if any Adsense client refers a new client and the new client earns the minimum payout amount(ie, 100 $), the referring client gets 100 $ for referring him.

The catch here is that if there were multiple level of referrers, then, Adsense may end up paying out 100 $ to all the referrers.
Consider a scenario in which, A refers B and B refers C and so on.
Finally Y refers Z.
Z implements Adsense effectively and gets the payout(minimum 100 $).
Now, Y gets 100 $ referral amount and gets his payout, thus making X to get 100 $.
It goes up until A gets his 100 $.
It accounts to a total of 2500$ finally.

This is rather bizarre and does not have an explanation yet.
In practice of course this is a highly unlikely scenario but it does emphasize the point that if you ignore the AdSense referral program you could be throwing good money away.

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