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

---

Powered by Feedzilla

Contact Us Today For Ad Information...

Ebooks, Scripts, Websites, and more...

Cheap Domain Names

How I Started My Own Work At Home Internet Business With Very Little Investment!

Have you always wanted to work at home? Have your... Read More

The Key to a Successful Affiliate Program

Two Christmases ago I tugged on one of those paper... Read More

Design Web Site Around Affiliate Programs

When starting a Web business, most people choose a topic... Read More

13 Killer Ways To Increase Your Affiliate Commissions

1. Start a private web site. Use it as a... Read More

Affiliate Programs: Why They Work and Why They Don?t!

Here it is in Black and White:Don't make the same... Read More

Understanding Affiliate Programs

Affiliate programs are commonly misunderstood, in order to understand affiliate... Read More

How to Grow Your Affiliate Marketing Business

Affiliate marketing is a large business in the internet today... Read More

5 Affiliate Marketing Mistakes To Avoid

Many people with the best intentions fail at affiliate marketing... Read More

Is There an Affiliate Free Lunch Program?

"Everything worthwhile has a cost... Whenever you think you are... Read More

What To Look For When Choosing Affiliate Programs

So you've decided you want to become an Internet Marketer,... Read More

Content Really is King

It is every affiliate's wish to have unique site content... Read More

7 Sure-Fire Ways to Build Large Affiliate Checks

Everyone wants a huge affiliate check. All the advertisements promise... Read More

Making Money Online With Affiliate Programs

If you are like most work from home internet business... Read More

Affiliate Marketing - Conversions

What is a good converting site?Well they say a "good"... Read More

Why Arent You Making a Ton of Cash as an Affiliate?

5 keys to you becoming a successful affiliate:1) HAS THE... Read More

Online Affiliate Programs - 6 Must Read Reasons to Join Them

You must have been exposed to the online hype, and... Read More

How to Create Multiple Streams of Income, Part 1

You've must have read the phrase "multiple streams of income"... Read More

Top 7 Affiliate Marketing Tips for Newbies

When a newbie begins an online business, the temptation can... Read More

How To Super Charge Your Affiliates

In my article "Affiliate Marketing What Is It And Why... Read More

What Was I Thinking

I often wonder what I was thinking by joining an... Read More

Who Says Affiliates Cant Use Joint Ventures To Make Money?

This is a technique I teach almost every day. Yet... Read More

Super Affiliate Strategies Part 2

If you are an affiliate that is trying to promote... Read More

Are You Making These Costly Affiliate Mistakes?

There are many ways to generate sales, but there are... Read More

How to Evaluate an Affiliate Program

There are thousands of affiliate programs offering wide range of... Read More

All About Affiliate Networks

Over the course of my Internet marketing career, a significant... Read More