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Understanding Two-Tier Affiliate Programs by John Paul Richards

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Understanding Two-Tier Affiliate Programs by
Article Posted: 08/07/2013
Article Views: 94
Articles Written: 62
Word Count: 590
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Understanding Two-Tier Affiliate Programs

Two-tier affiliate programs are designed to help affiliate marketers make money. In today's modern world, most affiliates have a significant amount of knowledge concerning the different kinds of traffic for which they are paid. The following are some examples of various types of traffic from which an affiliate can generate an income:

CPM affiliate programs allow the marketer to get paid each time the merchant's banner is shown. CPC refers to clicks, where the affiliate receives payment every time a visitor clicks on a text link or banner. Most of the other ways of generating income fall under the term performance marketing.

Generating Traffic

Affiliates are marketers who send traffic to other sites through various methods. These include placing the aforementioned text links or banners on their own website, e-mail marketing, and purchasing sponsored listings from major search engines. The affiliate receives payment for sending potential customers to a specific landing page. Here, the customers will be encouraged to take some type of action, by either purchasing goods or services, downloading information, or offering their e-mail address so that the merchant can build a strong database. On certain pages, customers are encouraged to enter their zip code, as this helps merchants with their demographic statistics.

Two-Tier Affiliate Programs

With a two-tier affiliate program, the marketer finds other individuals to complete the same tasks-driving traffic to the website of the merchant. This is advantageous to the affiliate, as he or she will also get paid a percentage of what the second-tier marketer earns. For example, a marketer may promote five different offers on one website. He or she receives payment for every sale, download, e-mail, and zip code entered by customers that visited the merchant's site due to the efforts of the affiliate.

However, if the marketer forms a relationship with another affiliate who promotes one or more of these offers, he or she will earn additional money. This action is tracked by a referral code that is built into the text link or banner that the second-tier marketer uses on his or her website. For instance, if the program is paying five percent, then in any given month that the marketer's associate makes $1000, a $50 commission will be paid to the affiliate who recruited the new marketer. There are many different types of affiliate programs from which one can choose, but it is wise to join a network that pays lifetime commissions. This type of two-tier program pays the affiliate on a permanent basis, rather than simply a referral commission for a few months or a year. When signing up with a two-tier affiliate program, you should keep three things in mind:

The affiliate network must be credible and have proper tracking systems in place so that you are paid appropriately. You must also ask about how much you will be paid for each sale or click, and if you will be paid on a timely basis. Finally, you should inquire about the length of time you can expect to receive referral commissions. Such programs often vary significantly from one to the next, and therefore it is wise to compare several before making a final decision. With an appropriate amount of time and effort you will be able to find the perfect two-tier program to suit your needs.

John Richards is an internet marketing consultant and small buisness coach. Discover how you can make (MONEY ON LINE) as quickly as today by clicking below Download a step by step system to profit online without a website.

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