All of you who are new to affiliate marketing, the term ‘two-tier’ could be new. However, for all those involved in this type of moneymaking business, it could mean a source of income.
Two-tier is an interesting feature of a certain type of affiliate program, where, affiliates are allowed to sign up for additional affiliates below them.
This way, if the sub-affiliates – also known as the ‘second-tier affiliates’ – earns a commission, the affiliates above them receives a paycheck too.
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In 2-tier affiliate system, the 1st-tier of commission is similar to the normal affiliate program. The only DIFFERENCE is that an additional tier/s or sub-affiliates are involved. The marketers receive additional commission once the people that the 2-tiers referred to the program make purchase(s).
In theory, affiliate programs can have multi-tier program with unlimited number of tiers. However, there are certain limitations.
As tiers builds up, the affiliate program attracts more website owners who are mostly interested in making profits from others work or effort.
Two-Tier affiliate program is also called the multi-level marketing program. Usually, when you sign up for an affiliate program, you are known as the 1st-tier affiliate. The person you refer, or encourage to sign up for the program is called the 2-tier affiliate.
If there are additional tiers, then that affiliate program can be regarded now as multi-level marketing, or MLM.
Today, MLM is not as effective and profit generating as it used to be many years ago. The number one reason could be that at present, affiliates have more options. They can freely select from over thousands of different affiliate programs. They can even quickly switch from one program to another.
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Where You Might Go Wrong?
You might be wrong if you depend on your 2-tier to do the entire job for you. It does not work like that. You need to make sure that you carefully choose your affiliate merchant IF you want to use two-tier affiliate program to your advantage, and thereby, generate more income by enticing other sub-affiliates to sign up below you.
Here is how you pick those merchants who are profitable for you:
- Only select those merchants that generate a stable income for you. Probably because they sell high quality products
- Go after those merchants who will give you HIGH commissions for all your efforts
- Only sign up for those programs that offer you real-time tracking tools, treat their affiliates really well, and gives you enough proof that their advertising campaigns are proven and tested
- Lastly, ONLY sign up for the web merchant who gives high ‘visitors to sales’ conversion ratio.
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What Do I Recommend?
I highly recommend that you sign up with a web merchant that has a user-friendly website, which allows you to access it anytime. This will allow you to monitor your performance, including site visits and sales.
If possible, sign up with those merchants who provide you with powerful marketing tools to promote their products.
You will be wasting your time if…
On the other hand, if you are promoting poor-selling products or services that your visitors assume to be wonderful, you will be wasting your time.
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Not only you will be wasting your effort, but worse, you will be tarnishing your integrity and online reputation once your customers find that you are promoting low quality products or services to make quick bucks.
So, ONLY pick up highly-rated affiliate programs to make money with. By doing this, you will most likely build a strong relationship with your visitors (potential customers), and in addition, you can get more tiers to sign up below you.
Word of Wisdom
Be cautious, however. Some type of affiliate programs gives more importance on making profits by signing up more affiliates under you than making income from actual sales. You will notice that someone has already closed those sales without informing you.
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One way to spot this type of affiliate program is to know that they offer very LOW 1st-tier payment but skyrocketing 2-tier commission. Did you spot the ‘scam?’
Deciding whether you will join as a single-tier or a multiple-tier affiliate is something you must do on your own. No one else should influence that decision other than YOU, and YOU only.
With that said, let me tell you all the benefits of joining a 2-tier affiliate program.
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Benefit #1: Your profit will skyrocket because of sales from the customers that you 2-tier has referred
Benefit #2: You create a much broader customer base to which you can promote and sell your products and services
Benefit #3: You increase your profits and generate stable income as the customers referred to you by your affiliate or sub-affiliates could build a lifetime relationship and loyalty to the products you are promoting
Benefit #4: As time goes and you increase your customer base, you create an army of sub-affiliates that will promote and re-sell your products and services to their visitors and subscribers as well
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CONCLUSION: How to Use Two Tier Affiliate Programs to Your Advantage
You see, two-tier affiliate program creates a ‘win-win-situation’ for many people. We think it should be the NUMBER ONE method for wannabe affiliates, not to mention for the affiliate program managers as well.
As soon as you start making money online from your site as well as your tiers, then you can proudly say that you have finally figured out how to use two-tier affiliate program to your advantage.
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