Home Based Affilate Business: 2 Tier Affiliate Program

Two Tier Affiliate Program: Choose Between A Single Or Two Tier Affiliate Program

Marketers can boost their income through earning commissions from the sales their affiliates made. A two-tier affiliate program in particular, is a marketing structure wherein one gets paid with a small percentage on every sale any of his new referred affiliates made. That is of course on top of the regular commissions you get from your own sales.

To put it more simply, having a two-tier affiliate program, the affiliates are permitted to induct sub-affiliates, and they get paid with a little percentage these sub-affiliates bring about. For instance, the affiliates can get a 30% percentage for selling a certain product himself, and by the time one of his sub-affiliates generates a sale, this certain affiliate can get another commission, more likely 10%. This is indeed gainful for the affiliate since he can enlist a group of productive sub-affiliates, who are all producing renumeration for him with no effort from his end except though for the first stage of the recruiting process.

Now, if you start your own affiliate program should you want it to be a single-tier or two-tier? Others may shy away because of the apparent expense of the two-tier affiliate program. But it has to be known that it isn’t really that costly. A lot of affiliate program owners and managers come up with a mistake on this. But let’s understand this better.

For instance, you have your own affiliate program functional. Then, a certain average affiliate signs up. Mr. X has his own website that obtains average traffic, and he already has a newsletter with thousands of advocates published monthly. He posts the affiliate links you created on his site as well as endorses your product and services to his newsletter list. Primarily, he makes good sales. Nonetheless, a concern comes up when he floods his market with your services and products while causing his sales start to drop. His interest with your program then cuts down, and that can cause your sales to remain small.

ut what does it take if you begin to venture in a two-tier affiliate program? Instead of maintaining small commission payouts, you encourage your current affiliates to enlist other sub-affiliates to your affiliate program ventures. This will rocket your affiliate sales exponentially. Now, with Mr. X signing up in your two-tier program, after he has soaked his target market with your services and products, he then promotes your program to his clients and newsletter subscribers. A number of his subscribers and customers choose to sign up for the affiliate program. In return, this will then motivate Mr. X to keep on endorsing your services and products and enlisting affiliates. Apparently, this will boost up your income because of the increase of sales while having a much bigger customer base. And you also have a crowd of sub-affiliates selling your products while promoting your program to all their consumers and subscribers.