For those unfamiliar with affiliate marketing, two tier may be a new term to you, but for those involved in this type of money making; it could mean a stream of income. Two-tier is an interesting feature of certain affiliate programs that allow affiliates to register additional affiliates among them. So when a sub-affiliate, also known as a second tier affiliate, receives a commission, the above affiliate also receives a commission.
In a two tier system, the first commission rate is the same as in a regular affiliate program. The only difference is that there are additional tiers or sub-affiliates where the marketer also receives a commission after those additional tiers referred to by the program generate sales. In theory, an affiliate program can have a tiered program with an unlimited number of tiers, but there are practical limitations. As the levels rise, affiliate programs attract more webmasters who are primarily interested in benefiting from the work and efforts of others.
The two-tier affiliate program is also known as multi-level marketing. When you sign up for an affiliate program, you are identified as the first tier and the people you have recruited or encouraged to sign up belong to the second tier. If there is an additional tier, the current system can be viewed as Multi-Level Marketing (MLM). But today MLM is not as effective and successful as it was a few years ago. Because nowadays affiliates can freely choose from thousands of affiliate programs and quickly switch from one program to another.
You can be wrong if you think you can count on your second level to do the job for you. So if you want to take advantage of a two tier affiliate program and generate more income by encouraging sub-affiliates to sign up under you, make sure you choose your affiliate dealers carefully. Choose retailers who generate a steady stream of high-quality products, offer high or fair commissions, offer real-time tracking, provide you with a tried and tested advertising arsenal and treat their partners very well. You can also sign up with merchants who have high conversion rates from visitors to sales.
It is also recommended that you contact a web retailer who have a user-friendly website that you can access anytime so that you can monitor your stats including visits and sales. And if possible, choose one that has a powerful marketing tool that you can use to promote the product.
You’re just wasting a lot of time and effort, and worse, you’re ruining your integrity by promoting a bad affiliate program because your visitors will surely assume that the product or service you are reselling must be bad too. For this reason, it is important to choose a top notch affiliate program. This way, not only can you build a good relationship with your visitors, but you can also easily register more levels below you. You should also be wary of some affiliate programs where the profits from acquiring other affiliates are more important than the income from sales, since at some point you will find that someone has completed the sale without telling you. Usually these type of affiliate programs offer very low first level payouts but incredible second level commissions.
If you want to start your own affiliate program, you should definitely decide whether it will be a one-tier or two-tier affiliate program. Who should I tell which of these two programs is better? But let me tell you the benefits that you can get from a two tier affiliate program.
First, your profits will increase due to increased sales from customers referred by your second tier. Second, you have a much wider customer base to sell your products and services to. Then you will have an increasingly stable income as the customers referred by your affiliates and sub-affiliates can potentially develop lifelong loyalty to your site and your products. In addition, you have an army of sub-partners who promote and resell your products and services to their visitors and customers.