2 Tier Affiliate Programs Explained

 In the future, how will referring new affiliates to an affiliate program generate me money? That's where a two-tier affiliate scheme comes in handy!

Affiliates are becoming more astute by the day. Affiliates now understand the distinctions between the various forms of traffic for which they might be compensated. There are several definitions, including CPM, CPC, CPA, CPL, CPD, and many more.

CPM stands for cost per thousand impressions, and it is paid to the publisher (the website owner) every time a banner is shown.

CPC stands for cost per click, and the publisher (or email marketer or another marketer) is paid each time a banner or text link is clicked.

Other methods of payment are lumped together under the phrase performance marketing, and here is also where the word affiliate is most widely used.

An affiliate marketer is a marketer that directs people to another site through several means (for example, displaying banners or text links on their own site, purchasing sponsored listings on search engines, email marketing, and many other methods) and is paid when an action occurs. This action may be a lead (CPL stands for Cost per Lead), a sale (CPS stands for Cost per Sale), a download (CPD stands for Cost per Download), or a combination of the three.

CPA (cost per acquisition) is a phrase used by some in the Internet sector to refer to performance-based marketing, while the term is also used for particular sorts of campaigns such as leads or sales.

Now that we've gotten through the difficult phase, the rest is simple.

The affiliate is compensated for directing users to a certain landing page where an action occurs, such as a lead, a sale, a download, or any other kind of activity required by the advertiser. For example, some marketers want to develop their databases, so they pay for each opt-in email address they get; others want leads from particular places, so they pay for zip codes and then attempt to persuade visitors to fill out a more extensive lead form once they enter their zip code.

The common denominator is that the affiliate is compensated when activity occurs.

A two-tier affiliate scheme is just finding new marketers to join up under you to do EXACTLY what you are doing, which is sending traffic to various offers and being paid when the visitors take some type of action. So, why would you want other marketers to join you in promoting the same offers? Simply put, you are paid a portion of what the affiliate you referred gets paid. Does it seem complicated?

Don't worry, it's not difficult to grasp. Assume John promotes five distinct deals on a single affiliate network. He is compensated for each lead, sale, email, and zip code he creates from these many offers. John now informs Mark about the Network and convinces him to join by utilizing a banner or text link that includes John's referral code. Mark now joins the Affiliate Network as John's agent and begins marketing different offers and sponsors from the Affiliate Network. These deals DO NOT have to be the same as the ones John is pushing. Mark may advertise ANY of the Affiliate Network offerings.

And now comes the finest part.

John earns a proportion of any sums that Mark receives over what Mark receives. So, if Mark receives $1000 in Month 1 and the 2 Tier Affiliate program pays 5%, John would make $50 only for promoting Mark.

But it gets better.

Some second-tier affiliate networks provide LIFETIME commissions. So John doesn't earn a referral commission for a month or a year; he gets it FOR LIFE.

If Mark becomes a terrific affiliate and begins producing massive commissions every month, John may just sit back and collect the checks he directed him to.

When looking for affiliates to join up under you on 2 Tier Affiliate Programs, there are three factors you should keep in mind:

Is the affiliate program or affiliate network legitimate, does it have adequate monitoring so your referrals are accurately recorded, does it have excellent campaigns and offers for affiliates to push so they truly earn money and does it pay on time? Assuming the affiliate program or network is good, what proportion of the sums paid to your referrals do they pay you? Because all programs differ, compare them to discover what the industry standard is.

How long will you continue to get referral commissions? Some pay for a month, while others pay for a lifetime, with numerous variants in between.

So do your research and discover a two-tier scheme that will pay you for the effort you are doing now in the future.