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Why Two-Tier Affiliate Programs are Best



AliExpress by Alibaba.com


When you join an affiliate program or start an affiliate program of your own, you have to decide whether it will be a single tier or two-tier affiliate program.

With a single tier program you earn a commission on any sales you make and that is it. If you are running your own affiliate program, you pay your affiliates a commission for any sales they refer and that is all.

However, with a two-tier program, affiliates are allowed to recruit sub-affiliates and are paid a small percentage of the sales these sub-affiliates generate. For example, the affiliates may earn a 30% commission for selling product X himself; and when one of the sub-affiliates makes a sale, the affiliate may get a 10% commission as well. This is very profitable for the affiliate as he can recruit an army of sub-affiliates, all earning commissions for him without any effort on his part except for the initial recruiting process.

If you are starting an affiliate program of your own should it be two-tier or single tier? Some might shy away from the seeming expense of a two-tier program. But is it really that expensive? Many affiliate program managers make the wrong decision on this.

Let's look at an example. You have an affiliate program up and running and an average affiliate joins your program. Mr.Average has a web site that receives average traffic. He also has an ezine with thousands of subscribers published monthly. Mr. Average posts your affiliate links to his web site and promotes your product to his ezine list.

Initially, he generates good sales. However, a point comes when he saturates his market with your product and his sales begin to drop. He begins to lose interest in your program and your sales remain small. What happens if you set up a two-tier program? Rather than trying to keep your commission pay outs small, you motivate your existing affiliates to recruit other people to your program. This will exponentially increase your affiliate sales. Would it not be worth paying the referring affiliate a percentage of their sub-affiliates' sales? Now when Mr.Average joins your affiliate program this is what would happen. When he has saturated his market with your product, he would now promote your affiliate program to his customers and ezine subscribers. Many of Mr.Average's customers and subscribers decide to join the affiliate program. This in turn will motivate Mr.Average to continue promoting your products and recruiting affiliates.

Now what is the situation?

1) Your income increases because of increased sales.

2) You have a much larger customer base to which you can sell 'backend' products.

3) An increase in your income because of the life time loyalty of the customers referred by your affiliate.

4) An army of sub-affiliates who will sell your products, and in turn promote your affiliate program to their customers and subscribers.

The little extra in affiliate sales commission pay outs will be more than compensated for by the exponential sales increase. This is why the two-tier affiliate program is a guaranteed winner and should be the automatic choice for potential affiliates and affiliate program managers.

John Lynch

For details of the SiteSell affiliate program with lifetime customer commissions, residual commissions through renewals of Site Build It, and 2-tiers of income go to: http://affiliates.sitesell.com/finian.html

AliExpress by Alibaba.com


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Stockholm-listed iGaming affiliate Better Collective has posted a 64 per cent increase in revenue to €15.8m for the second quarter of 2019, benefiting from a ...


Affiliate Software Market – Expected to Boost the Global Industry Growth in the Near Future : HitPath, Linkdex, Resels - Indian Columnist
Affiliate Software Market – Expected to Boost the Global Industry Growth in the Near Future : HitPath, Linkdex, Resels  Indian Columnist

HTF MI released a new market study on Global Affiliate Software Market with 100+ market data Tables, Pie Chat, Graphs & Figures spread through Pages and ...


Viacom Q2 Profit Rises 3% Despite Dips in Advertising, Affiliate Revenue - Variety
Viacom Q2 Profit Rises 3% Despite Dips in Advertising, Affiliate Revenue  Variety

Viacom eked out a profit in its fiscal second quarter, even as revenue from several of its main business lines decreased.


Retail Briefing: Retailers are trying to loosen Amazon’s grip on affiliate revenue - Digiday
Retail Briefing: Retailers are trying to loosen Amazon’s grip on affiliate revenue  Digiday

As customer acquisition costs through Facebook and Google rise, retailers are turning to publishers for help. Affiliate partnerships with publishers is becoming ...


The Walt Disney Company Reports Third Quarter and Nine Months Earnings for Fiscal 2019 - Benzinga
The Walt Disney Company Reports Third Quarter and Nine Months Earnings for Fiscal 2019  Benzinga

The Walt Disney Company (NYSE:DIS) today reported quarterly earnings for its third fiscal quarter ended June 29, 2019. Diluted earnings per share (EPS) from ...


The 25 Best Affiliate Marketing Companies in 2019 - Small Business Trends
The 25 Best Affiliate Marketing Companies in 2019  Small Business Trends

In America, the spend on affiliate marketing is projected to hit $8.2 billion USD by 2022. Here are 25 of the best affiliate marketing companies for 2019.


Better Collective revenues up double digits on US investment plan - EGR Global
Better Collective revenues up double digits on US investment plan  EGR Global

Better Collective today reported Q2 revenue growth of 64% to €15.8m as the business continues to reap the rewards of its US investment strategy.


NeoPhotonics' revenue rises 3% in Q2 as Huawei shipments only partially subject to export ban - Semiconductor Today
NeoPhotonics' revenue rises 3% in Q2 as Huawei shipments only partially subject to export ban  Semiconductor Today

For second-quarter 2019, NeoPhotonics Corp of San Jose, CA, USA (a vertically integrated designer and manufacturer of hybrid photonic integrated ...


Streaming video wars are giving publishers an affiliate fee bump - Digiday
Streaming video wars are giving publishers an affiliate fee bump  Digiday

The battle of streaming video has only just begun, but publishers are cashing in thanks to affiliate links. Over the past year, as consumer interest in streaming ...


Indiana, Kentucky Planned Parenthood seeing alliance boost - Associated Press
Indiana, Kentucky Planned Parenthood seeing alliance boost  Associated Press

INDIANAPOLIS (AP) — Planned Parenthood of Indiana and Kentucky is receiving a nearly $1 million funding boost and is adding staffers since its merger with ...


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