Two-Tier Affiliate programs are best
When you join an affiliate code
or initial
an affiliate script of your own, you have to decide whether it will be a single tier or two-tier script.
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 code
, you pay your affiliates a commission for any sales they refer and that is all.
However, with a two-tier script, affiliates are allowed to recruit sub-affiliates and are paid a small percentage of the sales these
sub-affiliates contruct
. For example, the affiliates might
earn a 30% commission for selling item X himself; and when one of the sub-affiliates makes a sale, the affiliate might
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 script 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 contruct
the wrong decision
on this.
Lets look at an example.
You have an affiliate code
up and running and an average affiliate joins your code
. Mr.Average has a website that takes in 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 merchandise
to his ezine list.
Initially, he generates nice
sales. However,a point comes when he saturates his advertise with your item 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 everybody to your program. This will exponentially increase
your affiliate sales. Would it not be assessment of value 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 advertise with your merchandise
,he would now promote your affiliate script to his customers and ezine subscribers.
Many of Mr.Averages customers and
subscribers decide to join the affiliate program. This in turn will motivate Mr.Average to continue marketing your products and
recruiting affiliates.
Now what is the situation?
*Your income increases because of increased sales.
*You have a much larger customer base to which you may sell backend products.
*An increase in your income because of the life instant loyalty of the customers referred by your affiliate.
*An army of sub-affiliates who will sell your businesses products
, and in turn promote your affiliate script 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 script managers.
John Lynch 2002
[ John Lynch is an affiliate of the Internet Marketing
Center http://www.marketingtips.com/sr/t.x/650274]
John Lynch is an affiliate of the Internet Marketing Center - http://www.marketingtips.com/sr/t.x/650274
