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

---

Instant Success - Yeh Right.

Join our affiliate-program and make your fortune overnight.Sound familiar ?How... Read More

Your Home Based Affiliate Marketing Business

Did you know that you can make money on the... Read More

Internet Tip of the Week: Reality Check

Every time you turn around it seems you see another... Read More

Are Affiliates Getting Fired?

An alarming trend seems to be catching on with popular... Read More

How To Create A Lifetime Income With Affiliate Programs By Changing Your Focus!

"How To Create A Lifetime Income With Affiliate Programs... Read More

How To Really Make Money With Datafeed Merchants

I am not going to describe what a product feed... Read More

How to Skyrocket Your Affiliate Marketing Revenue in 30 Days or Less

Starting up your internet business as a member of an... Read More

Generate More Sales in ANY Affiliate Program ? Part Two

Incentive Marketing, Incentive Marketing, Incentive Marketing?It doesn't matter that there... Read More

High Paying Lateral Keywords

If you run AdSense on your site you know that... Read More

Affiliate Marketing Assets - Things You Need In This Business

There are millions of ways to make money, particularly in... Read More

How To Make Niche Profits Without a Website

You don't need to buy any "amazing new ebook" or... Read More

5 Magical Steps For Creating A Profitably Potent Affiliate Program!

There are a few reasons why your affiliate program isn't... Read More

Finding the Perfect Affiliate Program

Finding a good affiliate program can be sometimes daunting and... Read More

In Mourning for the Google Cash System

Do you remember when you could pick an affiliate program,... Read More

Three Easy Ways to Become a Super Affiliate and Earn Cash Quickly

If you want extra cash every month, you have to... Read More

Reseller vs Affiliate ? Which One Is For You?

Have not decide if becoming an affiliate is for you?... Read More

Earn Top Dollar With Your Affiliate Monthly Income Stream

Virtually all online marketers have attempted lots of schemes and... Read More

Five Common Mistakes Affiliate Marketers Make

Affiliate Marketing is one of the most effective and powerful... Read More

Successful Free Affiliate Programs

Affiliate programs are the latest money making tools available on... Read More

Why Top-earning Affiliates Have Their Own Domains And Websites

Many affiliate programs usually provide special web pages for their... Read More

Why Start An Affiliate Program?

As any business owner knows advertising can be a very... Read More

:: How To Succeed With An Affiliate Program

Affiliate Programs have exploded on the internet. Thousand of people... Read More

Affiliate Marketing: Starting Out On The Internet

So you want to start your own business, and you... Read More

WHAT! Internet Etiquette / Net Etiquette?

Many people know how -- and do conduct themselves in... Read More

Affiliates Go To School!

It has been said that only 2% of affiliate marketers... Read More

Join in on the Success of the 2nd Wave of Affiliate Marketing

What do I mean by '2nd Wave'? ... let me... Read More

Affiliate Programs - Can I Really Make Money?

If you have been looking around the internet for a... Read More

Collect Visitors Info First Before Sending Them To Affiliate

Honestly, I'm not a big affiliate fan because in the... Read More

Affiliate Marketing - Ten Excellent Reasons Why You Should Do It

There are many opportunities to make money working on the... Read More

How to Succeed With Any Affiliate Program

In the early days before the internet was born, starting... Read More

Affiliate Marketing Pros and Cons

Want an online business with a win-win opportunity for both... Read More

Promoting My Affiliate Programs--How?

Getting your website up, is really just the first phase... Read More

How To Become A Data-Feed Super Affiliate

I am not going to describe what a product feed... Read More