jotsheet

Do you need the best DreamHost promo code? It’s right here, plain and simple.

Promo code: MAX97

Compare the hosting plans, pick the best one for you, and input “MAX97″ at Step 5 to get the best price possible.

And remember, after you sign up, you can create your own promo code, publicize it on your blog or website, and make a little cash for yourself!

Details of “MAX97″ discount code

The “MAX97″ code gives you the best discount on everything, period. Here’s a screenshot of the code’s setup (which is set in stone once you make it) from my DreamHost admin screen:

At Step 5 of the setup process, you’ll be able to enter the promo code. Initially, it will look like this:

After clicking Update, you’ll see the $97 discount is applied. (The example is for the popular “Crazy Domain Insane” plan.)

The evolution of DreamHost codes

Perhaps you’re wondering what this whole DreamHost promo code thing is all about, and why there are a ton of people offering them on blogs. I wrote about this about six months ago, and here’s a summary:

The story goes like this. [DreamHost] gives its users money when they refer new customers. By its own admission, my web host has a ridiculously high profit margin, allowing them to pass on a generous fee ($97) for every new user signed up in an existing customer’s name. But this was the old system, and frankly, it wasn’t very exciting. Many online businesses have similar referral programs, and the amount of money you can make off such a system is roughly proportional to the number of friends you’ve got online willing to do you a favor.

Then my hosting company had a very interesting idea: allow their users to give up part of the $97 award as a discount. Allow their users to create custom codes. Why? To spread the wealth and to create competition. No longer would all of the award money go to the existing customer; now it would be split between the existing and new customer.

When DreamHost initially rolled out the system, savvy users realized that that the sweet spot was to something between a $0 discount to their users (the old affiliate system) and a $97 discount (which would pay the affiliate nothing). Initially, most folks offered a $50 discount. Some more, some less, but this was pretty common.

Soon after, folks started upping the ante. Folks mixed in a little SEO and a smidgen of deception (see: rise of “dreamhost-promo-code”-type domain names) and trying to work their way up the SERPs. The discount amounts went up: form $50 to $60, $60 to $70, and so on. And then, of course, came the $97 promo code.

Today, the full, $97 discount permeates the SERPs. Affiliates are giving away the full $97 amount available in their discretionary discount, and you might think the Internet has taken a shift toward altriusm. That’s not quite right.

Secondary referrals

Initially, the profits to be reaped from giving a full $97 discount are slim. In fact, they’re $0. I give you $97 off your bill, and I don’t get a penny. But here’s the catch: if you refer someone to DreamHost, I receive $5.

Some folks might think that’s a pyramid scheme. It’s not. It’s actually just a clever twist for an affiliate program, and the “pyramid” has only two steps. Beyond that, nobody loses in this “scheme”; you get the biggest discount possible, and if you didn’t use a code to sign up with DreamHost, you’d be paying $97 more, period.

That’s about it, folks.

So. That’s how it works. Why am I teling you this? First, because hardly anyone’s forthcoming about how affiliate programs work and the financial interest they have in them. You’ll read a lot of people saying things like, “Here’s the full DreamHost discount. I don’t make a penny, but enjoy!” That’s not the whole truth. I guess I believe that honesty is the best policy, and you’re more likely to reward me than some other schmoe who’s deceptive. (Yeah, in the interest of honesty, I like to make money, too!)

And hey, if you’re feeling really generous, you can give me more money when you sign up (and get a smaller discount) by using a different code. I definitely don’t expect that, but what the heck:

• “75ALIVE” = $75 for you, $22 for me
• “88ISGREAT” = $88 for you, $9 for me
• “DEAL90″ = $90 for you, $7 for me