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.