A Point is a share of your total reward amount from a campaign. Instead of rewarding a specific number of tokens for each action, most companies choose to offers Points instead. This is due to the fact that the campaign budget is limited, and rewarding each action with tokens will quickly consume the budget. The campaign may end ahead of its scheduled finish date because it will run out of budget and it also means that only a limited number of influencers can join the campaign before the budget runs out.
In order to prevent these issues and give more people a chance to participate in a campaign and earn rewards, each action is rewarded with Points. The total number of Points is unlimited, which theoretically allows an infinite number of participants to work on the campaign. At the end of the campaign, the budget is divided by the total number of Points accumulated and a token value is established for a Point. Each participant will earn tokens based on the number of points they have (earnings = points * point token value).
Lets assume a campaign is offering 100 tokens for joining their Twitter channel, however, they also want a lot of people to participate in their campaign. At the end of the campaign, lets assume there were 5 participants that have accumulated 850 points, as follows:
- participant 1: 200 points
- participant 2: 120 points
- participant 3: 100 points
- participant 4: 280 points
- participant 5: 150 points
Since the campaign budget was 100 tokens and at the end of the campaign there were 850 total points accumulated, the value of each point is 100/850 = 0.117 tokens. This means that each user will receive:
- participant 1: 200 points * 0.117 = 23.4 tokens
- participant 2: 120 points * 0.117 = 14.04 tokens
- participant 3: 100 points * 0.117 = 11.7 tokens
- participant 4: 280 points * 0.117 = 32.76 tokens
- participant 5: 150 points * 0.117 = 5.85 tokens