ZiXXo shares revenue with the affiliates that help the company recruit advertisers and publish the coupons. ZiXXo employs a 2-tier compensation plan which enables companies to make money not simply by recruiting advertisers and publishing coupons, but also by recruiting other affiliates.

Here is a simple diagram of a hypothetical transaction involving the following roles, from left to right:

Ad Rep: This affiliate encourages the business to create a coupon using the ZiXXo system. The Ad Rep in this example is Yahoo Local. The Ad Rep receives 40% of the 50¢ coupon print fee.

Affiliate 1: This affiliate referred Yahoo to ZiXXo. This affiliate receives 10% of Yahoo’s 40% for this transaction, or 4%.

Affiliate 2: This affiliate referred AOL to ZiXXo. This affiliate receives 10% of AOL’s 15% for this transaction, or 1.5%.

Publisher: This affiliate is actually publishing the coupon to the end-user. In this case the publisher is AOL. This affiliate receives 15% of the 50¢ coupon print fee.

Example Transaction:


You might wonder why we use an unbalanced compensation plan that pay more to the Ad Rep than the Publisher. The answer is simple. Coupons add value to the publisher’s site. Consider the fact that over 50% of Sunday newspapers are purchased for the coupons. The largest portion of the value is in selling advertisers on using the ZiXXo service.

Of course, there is a significant benefit for the Ad Rep. You see most Ad Reps also sell some form of display advertising along with the coupon. Unfortunately, there isn’t a good way to determine the efficacy of display advertising. But each time a customer redeems a coupon, that business realizes that their advertising is working. The syndication multiplies this effect, making the business a loyal customer of that Ad Rep!