Rabu, 29 Mei 2013

Why Two Tier Affiliate Programs?

For anybody who is not familiar with affiliate marketing, two-tier will probably be a new term to you. But to those who are involved in this kind of marketing; it means a reliable stream of income. Two-tier is a feature of any particular affiliate program where 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 a two-tier system, the first tier of commission is just like the usual affiliate program. The sole difference is that it has an additional tier/ or sub-affiliate, whereby marketers also gain a commission once the people that the additional tiers referred to the program generate sales. Affiliate programs can have a multi-tier program with infinite number of levels; 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 programs are 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. This is because at present, affiliates can freely select from thousands of affiliate programs and they can quickly switch from one program to another.

So if you want to use two-tier affiliate programs 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 a stable stream of high quality products. Make sure your merchant has a good tracking system and has a good reputation for looking after their affiliates. Look for the merchant who gives high visitors-to-sales conversion rate.

It’s also advisable that you find yourself a web merchant that has a user-friendly website which you can access anytime to 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.

Pick wisely or you will just be wasting your time and effort, worse still damaging your reputation. As soon as you start promoting a poor program it will reflect on you and your site. This is the reason why it’s so 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 eventually someone has already closed 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.

If you want to start an affiliate program of your own, you have to decide whether it will be a single tier or two-tier affiliate program. Which of these two programs are better? Let’s look at the benefits you could get out of the two-tier affiliate program.

First off, 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. You gain more stable income because the customers referred by your affiliate and sub-affiliates could develop a lifetime loyalty for 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 programs are a proven winner and should be the number one choice for affiliates as well as for the affiliate program managers. So I hope you can now see the advantages of two-tier affiliate programs.
As Spok would say live long and prosper.


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