The Blastoff Revenue Share Explained

So far few people fully understand the exact revenue share model for Blastoff earnings, and of course how they came up with it exactly. Blastoff doesn’t make it easy, saying not much more than:

Generally, your reward will range between 0.042% and 1.5% of every sale (before taxes and shipping and handling charges) generated within 10 (or 20) levels of your network. Remember: You are on Level 0 of your network and will get the cash-back reward specified under the merchant icon for your personal purchases in your Blastoff Mall or Travel portal.

To get an idea of your reward potential from a Mall or Travel purchase:

• Choose one of the merchants that you or your friends shop often and estimate the total from a typical purchase (without shipping, handling, and taxes included).
• Divide that merchant’s cash-back reward by three.
• Divide the new amount by 10 or 20 (for each level in your network).
• Multiply this with the purchase total (if it is a percentage-based reward).

The result is an example of the type of income you can expect every time anyone within the first 10 or 20 levels of your network makes a similar purchase from their Blastoff Mall or Travel portal. Given the potential size of your network, even the small amounts can add up quickly.

Many people find this rule of thumb confusing, and the most common question I hear about it is “Why do we Divide that merchant’s cash-back reward by three?” Some people mistake the 1/3rd for our revenue share, but in fact I have found that Blastoff generously is giving us 1/2 of the remaining money after the Cash-Back proceeds are taken out, not  just 1/3rd.

After some research, I’ve found out the actual answer to the question above. It is a bit complicated though, so bear with me; I’ve even made some charts and graphs for you.

It starts in the major Affiliate Marketplaces like Commission Junction and Linkshare. Setting aside the cell phone, Direct TV, and other special deals that Blastoff is selling for us through our Blastoff Malls, (these have their own, separate commission schedule) all Blastoff Mall merchants first place their stores online at these huge affiliate marketplaces.

Let’s take the women’s clothing retailer Avenue for example. You can see that in the Blastoff Mall, Avenue offers 3% cash back to the owner of that mall who shopped in it. (We’ll just call them the “shopper” for simplicity, which assumes all shoppers own their own Blastoff portal and are shopping in it.)

I logged into my Linkshare account recently and found Avenue listed there for a 5% commission. Clearly, 3% is less than 5%, so that explains how Blastoff makes its share of the money.

The more I dug and looked at other affiliates in these marketplaces, the more I realized that Blastoff always split the commissions earned at each merchant 60%/40%.  Specifically, 60% of that 5% commission goes towards Cash Back purchases, every time. (60% of 5% equals 3% of the overall purchase.)

Meanwhile, the other 40% (overall 2% in this example) gets split EVENLY between Blastoff themselves and the 10 or 20 blastoff members, depending on if you are a PPL member or not. As you can see in the following chart, there is much more to this story than Blastoff publishes:

As you can see, the 3% in your Blastoff Mall is really just 60% of what the merchant’s official affiliate program offers (which is 5% in this example).

If purchased through your downline members mall, (on any level) you’ll earn a portion of the remaining 2% because the big cash-back portion (the 3%) always goes directly to the owner of the Mall. (Otherwise, there would be no incentive to join for most people.) Now, the question becomes how much of the 2% will I earn?

Most people reading this might be thinking right now: “Why would I ever care about such a tiny amount? Well, because in networks the size of 10 and 20 levels deep, that very easily becomes the largest part of your earnings. I’d much rather earn a small percentage of millions of sales daily than simply 3% of my own cash back. This is the only reason I joined Blastoff, in fact.

Anyway, back to the ‘divide by 3 mystery.’

This rule of thumb Blastoff made up makes sense once you know about the original affiliate program commission. Half of Blastoff’s share paid to us is always a third of the Cash-Back percentage.

You can easily see in the chart below how they arrive at 1/3rd. I pulled the current affiliate commission rates for 23 different merchants right out of their original marketplaces, where Blastoff gets them. Clearly, the Blastoff Mall Cash-Back percentage rate always equals 60% of the Affiliate commission (rounded to whole percentage), every time.

So the 1/3rd, (or 33.33% in decimal) that Blastoff would have us divide by happens to equal half of the remainder of 60% (half of 40%) of the original affiliate commission.

Let’s take our Avenue example again, which originally paid 5% (Column A), and is listed in the Blastoff Mall at 3% (Column C). Of that 5%, the 40% NOT going to Cash Back is 2% (Column D). That 2% is split in half (Column E), equally between Blastoff and people in that member’s network. In other words, 1% goes to Blastoff and 1% is split upline, 10 or 20 ways.

As you can see, 1% is actually the 1/3rd (illustrated by Column F) of the 3%. Follow the chart above and you will see that it works out this way every time for every affiliate program!

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