Algorithm for inviting referrals

Most people think that earning from faucets takes years…

But that’s not true! At the beginning, I personally managed to actively earn at least $40 in a month. This is already a great starting capital that can be used to completely dispel the myth about needing years to earn.

So, referral systems! This is a tool for turning your active income into passive income.

Below is a standard step-by-step guide on how to use this tool.

1️⃣ Project selection

Everything starts not with advertising, but with choosing the right project.

I divide projects into 3 types:

• old — reliable sites, suitable for active earning and as an advertising platform. On these sites, develop the referral system only with free methods.

• mid-age — running for 1–2 months, suitable for active earning and testing

• new projects — high potential for passive income

There is a separate article on how to choose the right cryptocurrency faucet for advertising. There is also a short project evaluation checklist.

2️⃣ Advertising test

The goal of the test is to understand whether the advertising works, whether users register, and whether they are active.

This includes:

• identifying the main advantages of the project for advertising. You need to highlight two or three strongest reasons why a person should register. For example: a new project, low minimum withdrawal, fast payouts, or many earning options. These advantages are used in banners or ad descriptions.

• choosing advertising platforms. A good way to find effective ads is to see which banner networks popular faucets use. For this, you can visit several well-known sites and check which ads are displayed there. Then you can use the same platforms.

• preparing ads. For PTC ads, a short description and a referral link are usually enough. For banner ads, it’s better to create several different banners — for example, three or four. They can differ in colors, text, or focus on different project advantages.

• launching and testing ads.

And here is the main mistake beginners make — testing only one platform.

It is better to test across multiple traffic sources.

For example:

3 PTC sites and 2 banner ad networks.

Approximate budget:

$1–2 per PTC site and $3–5 per banner network.

In total, the test may cost around $9–16.

This is enough to get initial statistics.

A PTC campaign usually runs very quickly, sometimes even within minutes. Banner ads should run for at least one or two days to gather data.

I highlight two types — PTC and banner advertising — because they are the most effective for quick testing. The difference is in campaign speed, conversion, and logic. PTC is cheaper, faster, with more clicks, but lower quality. Banner ads are the opposite. Therefore, if you have a limited budget — I recommend focusing on banner advertising.

3️⃣ Analysis

This is the stage of monitoring the advertising campaign. Based on key metrics, a decision is made on whether to continue promoting the project. There are several main indicators to pay attention to.

The first is banner CTR.

It shows how well the banner attracts attention. A good CTR (specifically for crypto faucets!) is around 0.6% and higher. The range of 0.4–0.6% is an average CTR, considered borderline values.

The second metric is the conversion of clicks into registrations.

That is, how many people who clicked on the ad actually registered.

For banner advertising, a conversion rate of 20% or higher is considered good.

The third metric is the cost per referral.

It is easy to calculate. You simply divide the advertising cost by the number of referrals obtained. If a referral costs less than $0.20, this is already a good result.

But the most important metric is referral activity.

That is, how many of them actually use the platform. If activity exceeds 20%, such advertising already has scaling potential.

Another useful metric is the cost of an active referral. It is calculated very simply: the advertising budget is divided by the number of active users. This metric helps determine when the advertising will pay off.

4️⃣ Scaling

If the results are good, the next step is scaling.

Keep:

one or two of the best PTC platforms and one or two banner ad networks.

After that, gradually increase the budget.

5️⃣ Reaching payout

Through referral activity, we reach the payout

6️⃣ Verification

If the project is not yet verified (and in most cases with new projects it isn’t), we check the project’s solvency.

7️⃣ Proof

We capture screenshots and video proof of the payout and take the next scaling step.

8️⃣ Content + landing page

This is not mandatory, but recommended as an additional step for higher-quality scaling.

A landing page is a single web page created with one specific goal: to make the visitor take one action.

Imagine you enter a supermarket (this is a regular website) — there are thousands of products, you walk around and may buy nothing. A landing page is a separate promotional stand in the middle of the hall offering only one specific tasting set. You either buy it or move on.

Conversion rates are usually significantly higher.

9️⃣ Scaling 2.0

And the most interesting part begins next.

When referrals start generating income, this money can be reinvested into new advertising.

Thus, a system is formed:

faucet → advertising → referrals → income → new advertising.

Over time, this can evolve into a full referral network that runs almost on autopilot.