1.4 HOW IS IT POSSIBLE TO PAY OUT 100% CASH BACK REWARDS AND STILL BE PROFITABLE?
The Productshare Protocol makes it possible to pay out significant cash back rewards by reserving one third (33.33%) of all profit generated to be paid out to customers in the form of cashback rewards. Cashback reserves are accumulated over time with 33.33% of the profit margin transferred immediately upon completion of a product sale to a dedicated bank account or a multi-signature secured blockchain wallet. The Productshare Protocol is envisioned as a completely decentralized service. Although some of its aspects are currently centralized, the long-term goal is to implement the protocol as a 100% trustless protocol that deterministically pays out cash back rewards to eligible users. Cash back rewards are automatically triggered upon the first time someone makes a purchase from a user’s Product-share link. The reward funds are instantly transferred by smart contract from the Cashback Rewards Reserve Account directly to the customer’s wallet. Based on historical performance data we expect that approximately 7% of all sales will trigger a cash back reward.