|Affiliate Revenue Information|
Why Two-Tier Affiliate Programs are Best
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
Shentel's fiber contracts drive up Q4 wireline revenues to $20.7M
For the year, Shentel reported total fiber lease revenues of $52.3 million with $30.1 million in affiliate revenue and $22.2 million in non-affiliate revenue. However, new external fiber lease contracts, which have terms that range from 36 to 120 ...
Editor's Cornerâ€”Can ESPN's new boss save the struggling sports network?
During the latest quarter, Disney's total media networks' affiliate revenue rose 4% thanks to higher affiliate revenue. But that gain was curtailed somewhat by a 3-point decline impact stemming from a decrease in subscribers. As WSJ points out, the ...
ESPN Streaming Service Coming This Spring for $4.99
James Pitaro Named President of ESPN and Co-Chair, Disney Media Networks
ESPN's new boss is Jimmy Pitaro, a longtime Disney executive
Here are Morgan Stanley's top 10 stock picks - MarketWatch
With major U.S. stock indexes within striking distance of records, are there any stocks that have further room to grow?
How Disney's Media Networks Performed in Fiscal 1Q18
The Walt Disney Company (DIS) has been facing declines in its Media Networks segment, which contributes a significant portion of the company's business. Media Networks posted revenue of $6.2 billion in fiscal 1Q18, almost flat compared to its YoY (year ...
Financial Newsletter - Zacks
The Walt Disney Company - DIS - Stock Price Today - Zacks
Top 10 Hedge Funds Holding DIS - Slide 1 of 10 - Holdings Channel
10 Stocks Poised for a Spring Bounce
Walt Disney (DIS) may be a winner as consumers continually shift to over-the-top viewing, and it also benefits from affiliate revenue growth, as well as its parks and film division. It's also trading at a discount to the market. Barron's thinks Disney ...
Disney, Nickelodeon and Cartoon Network banking on virtual reality
Despite declines in traditional pay TV subscribers, cable networks at Turner, Disney and Viacom have for the most part been able to offset those declines with increases in affiliate revenue. But recent announcements from Nickelodeon, Cartoon Network ...
Dennis is on track to make $83 million from selling cars online this year
British magazine publisher Dennis is quietly building an e-commerce empire, and not through affiliate revenue â€” through online car sales. The publisher generated $43 million (Â£31 million) in 2017 from selling used and new cars via its site Buyacar.co ...
Viacom Posts Earnings Gains Despite Paramount Loss, Affiliate Revenue Drop
Viacom delivered an improved financial performance for its fiscal fourth quarter despite a drop in cable affiliate revenue and a $59 million hit on the Paramount side from the collapse of its film financing deal with China's Huahua. Viacom topped ...
Viacom Shares Slide After Mixed Q4 Earnings Report, Affiliate Weakness
Viacom's US Revenue Lags Amid Declines in Cable Subscribers
Viacom expects distributor revenue to drop in 2018; shares sink
Viacom Soars on Affiliate Revenue Forecast
Viacom said it expects fourth quarter ad revenue to be positive and estimated affiliate revenue will decline in the low-to-mid single digit percentages for the full year. It had earlier predicted mid-single digit percentage declines. The gains come ...
Disney: 3 Different Valuation Approaches Signal It's Time To Buy
The decrease at Media Networks was due to contractual rate increases for sports programming, lower advertising revenue and higher losses from our equity investments in BAMTech LLC (BAMTech) and Hulu LLC (Hulu), partially offset by higher affiliate ...
|home | site map|