We are still pondering the appropriate revenue split between the Account Owner (the affiliate who referred the advertiser to ZiXXo) and the Coupon Distributor (the affiliate on whose website the consumer get the coupon). We believe that coupons distributed in newspapers provide the best analogy. Is their more value in selling the advertiser or distributing the coupon?

We found that 52% of Sunday newspapers are actually purchased for the coupons. If this same phenomenon is duplicated in the online world, it would result in tremendous growth in traffic for the websites that distribute these coupons. That alone may convince websites and web applications to add support for ZiXXo coupons. However, we believe that they also add value to our network and that we should compensate them.

The Account Owner, on the other hand does not receive such a value boost as the Coupon Distributor. For this reason we are thinking along the following lines:

Account Owner: 40% of revenue
Coupon Distributor: 10% of revenue

If, for the sake of example, the following:
1. ZiXXo charges advertiser 50¢ per printed coupon
2. There are 3 coupons printed for every 1 redeemed
3. There are 35 coupons redeemed per day at an average fast food restaurant

This would mean 105 coupons printed per day (35 coupons X 3)
This would mean ZiXXo would collect $19,162.50 (105 coupons X 50¢ per coupon X 365 days)
Therefore the Account Owner would be paid $7,665.00 per year ($19,162.50 X 40%)
And the various Coupon Distributors would share $1,916.25 ($19,162.50 X 10%)'

Please keep in mind that this is not set in stone, it is something we are debating and will continue to debate during the beta phase. However, we would like to hear your feedback, but only if you provide reasonable justification. “Don’t simply say, we distribute coupons, pay us more!” Please send your insights to feedback@zixxo.com.