To those who are not familiar with affiliate marketing, two-tier could be a new term to you but to those who are involved in this kind of money-making experience; it could mean a stream of income. Two-tier is an enticing feature of a particular affiliate program wherein, affiliates are allowed to sign-up additional affiliates below them. So that when the sub-affiliates otherwise known as second tier affiliates, earns a commission, the affiliate above receives a commission too.
In two-tier system, the first tier of commission is just like in the usual affiliate program. The sole difference is that it has an additional tier/s or sub-affiliates, whereby marketers also gain a commission once the people that the additional tiers referred to the program generate sales. Theoretically, affiliate programs can have multi-tier program with infinite number of tiers, however, there are practical limitations. As tiers increase, the affiliate program draws more webmasters who are mostly interested in gaining profit from other’s work and effort.
Two-Tier affiliate program is also recognized as Multi-Level Marketing. When you sign-up for an affiliate program, you are identified as the first tier and the person that you have recruited or encouraged to sign up is the second tier. If there are additional tiers, then the system can now be regarded as multi-level marketing (MLM). But today, MLM isn’t as effective and successful as it was several years ago. It is because at present, affiliates can freely select from thousands of affiliate programs and they can quickly switch from one program to another.
You could probably go wrong if you’re thinking that you can depend on your second tier to do the job for you. So if you want to use two-tier affiliate program to your advantage and generate more income by encouraging sub-affiliates to sign-up below you, make sure that you carefully choose your affiliate merchant. Pick those merchants who generate stable stream of high quality products, give high or just commissions, offers real time tracking, furnishes you with a proven and tested advertising arsenal and treat their affiliates very well. You can also sign-up for the merchant who gives high visitors-to-sales conversion rate.
It is also advisable if you engage yourself with a web merchant that has a user-friendly website which you can access anytime so that you can monitor your statistics including visits and sales. And if possible, choose the one with powerful marketing tools which you can use in promoting their products.
You’re just wasting much of your time and effort and worse, damaging your integrity once you promote poor affiliate program because your visitor will surely presume that the product or service you are reselling must be dreadful too. That’s the reason why it is important to pick first-rate affiliate programs. Through these, you can not only build up a good relationship with your visitor, but also, you can easily get more tiers to sign-up under you. You should also be cautious of some affiliate programs that give more importance on the profits to be earned in taking on other affiliates than on the income from sales, because you’ll just eventually find out that someone has already close those sales without informing you. Usually, this kind of affiliate program offers a very low first-tier payment but a sky-scraping second-tier commission.
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If you want to start an affiliate program of your own, you surely have to decide whether it will be a single tier or two-tier affiliate program. Who am I to say which of these two programs are better? But let me tell you the benefits you could get out of two-tier affiliate program.
First, your profit will increase due to increased sales from the customers that your second tier has referred. Second, you have a much broader customer base to which you can sell your products and services. Then, you gain more and stable income because the customers referred by your affiliate and sub-affiliates could probably develop a lifetime loyalty on your site and your products. Plus, you have an army of sub-affiliates who will promote and resell your products and services to their visitors and subscribers.
Two-tier program has been a proven winner and should be the number one choice for the budding affiliates as well as for the affiliate program managers. When you start gaining profits from your site as well as your tiers, this is now the right time to say that you have used two-tier affiliate program to your advantage.