Internet Affiliate Marketing is the system of promoting web based businesses in which a third party usually referred to as an affiliate is rewarded for every visitor, customer or sale he/she provides. In layman's term, Affiliate marketing is using one site to drive traffic to another.
Multi tier programs
In single tier Marketing programs the affiliates are paid based on the direct sales he has referred to the merchant. In two tier marketing, the affiliate is not only paid for the direct traffic he/she has referred to the merchant site, but also on traffic/sales made by other affiliates who joined the program through his/her recommendation. When this chain extends to a number of different tiers, it's known as Multi-Tier affiliate marketing. The process is referred to as snowballing, and occurs with or without the affiliate's being aware of each other's existence.
This marketing structure has been successfully adopted by a company called Quixtar, a division of the hugely successful Alticor. Quixtar website has implemented the structure for Major Corporations such as Sony and Office Depot. Multi Level Marketing and Multi Tier Affiliate Marketing share a similar modus of operandi, but unlike MLM there are no legality strings attached to affiliate marketing. Conventional direct selling firms are on a Multi-tier program adoption spree. The reason is that they have such a huge turnover that they have to pump enormous capital into recruiting new reps.
The new recruits were better and stuck around longer and also the price tag for an upstream rep was far less than what the companies had been paying in the conventional model. Most active online affiliates are part of a multi tier chain without being aware of it. The base commission with a multi-tier affiliate grants you 30% .Other online affiliates who sign up using your affiliate code generate sales of which 10% finds its way to you.
They key in Multi-Tier affiliate programs is to craft a second tier with people who are known to work hard and provide substantial results. If the second tier affiliates screw up they could easily suffocate a successful income stream for the upper level affiliates. It can be extremely rewarding as one can build on many different models and positives of other web marketers to drive their message, thus increasing their profit.
Not as easy as made out to be
Most sites would like you to believe that multi tier program is about lazing around and partying with friends while your sub affiliates mint money for you, nothing can be further from the truth. Multi-tier affiliate marketing is not the self-dynamic entity it's hyped out to be.
The major flaw with multi-tier internet marketing is that higher up reps are literally digging their own grave by promoting those below them. This cannibalization of one's productivity by spawning competitors against self makes little sense. The trick is to know a number of productive affiliates, so that you don't saturate the market.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Affiliate Programs Articles
Affiliate Marketing Survival Skill: is Your Product Targeted Enough?
By: Zack Lim | 22/11/2008
There some factors that you will have to consider when you are looking for good affiliate product to promote to your customers. One of the key questions that you will have to ask yourself is whether the affiliate product that you are promoting is targeted enough. Why do you need to ask yourself this question?
Affiliate Marketing Survival Skill: Checking the Sales Conversions of the Merchant Website
By: Zack Lim | 22/11/2008
Are you convinced to buying the products after you have read through the sales letter? This is a very important question that you will have to ask yourself when you are looking for affiliate products to promote. Why the merchant’s website sale conversion is so important to your business?
Affiliate Marketing Survival Skill: is the Commission and Incentive Attractive for You?
By: Zack Lim | 22/11/2008
Understanding the affiliate program that you are promoting is a very important step as you will want to know the benefits that you can get from the Affiliate program. One of the things that you will want to know is the commission and the incentive that the merchant is offering. There are 2 questions that you will have to ask yourself.
Affiliate Marketing Survival Skill: Checking the Payout Schedule and Limit
By: Zack Lim | 22/11/2008
When you are doing your affiliate marketing business, you will be spending a lot of your time and effort to promote the affiliate product. You will be expected to be rewarded with the commission from the merchant. It is thus important for you to know the payment system that the merchant has in paying their affiliates.
Affiliate Marketing Survival Skill: Checking the Merchant’s Term of Service
By: Zack Lim | 22/11/2008
There are many things that you will have to consider when you are choosing the affiliate program that you want to join. It is important that you join a good affiliate program so that you will not be taken advantaged by the merchant. One of the things that you will have to check is the merchant’s term of service.
Affiliate Marketing Survival Skill: Checking the Merchant’s Support and Contact
By: Zack Lim | 22/11/2008
It is true that you do not have to do any customer supports if the customer purchased the product from the merchant and the merchant should be in charge of giving the support. You will be thinking that your role is to just continue referring customers to the merchant’s website so that you will be credited with the commission if the customer purchases the product. Do you know that your business will be affected by the responsiveness of the merchant’s customer support?
Affiliate Marketing Survival Skill: Do You Want a Long Term Business?
By: Zack Lim | 22/11/2008
Before you even started your business, you will have to decide on the kind of business that you want to have. If you are not clear, you will not know the things that you will have to do to start your business. So what are the things that you need to know if you want to start your own long term business?
Affiliate Marketing Survival Skill: Checking the Quality of the Affiliate Products
By: Zack Lim | 22/11/2008
There are many affiliates who are only interested in earning quick money and they will just promote any products hoping that the customers will buy. It is true that one of your business goals is to earn money but it is also important that you make your customer happy. One of the things that you will need to do is to check the quality of the affiliate products that you are promoting to your customer. Why is it important?
More from Stephen Campbell
Tools For Effective Time Management
By: Stephen Campbell | 28/09/2008 | Time Management
Throughout the course of history human being has sought to augment new methods to record, track and make better use of time.
Learning Basics About Stock Market
By: Stephen Campbell | 25/09/2008 | Finance
There are so many ways to make money out the and for many How Does the Stock Market Work is not hard when we consider it as an ideal proposition for making money.
Effective Credit Card Usage
By: Stephen Campbell | 13/09/2008 | Credit
In the first place, the less you know about credit cards, the lots more likely you are to fall into credit card debts; it is easy to protect yourself against this by being knowledgeable when it comes to credit cards.
Some Important Tips For Home Selling
By: Stephen Campbell | 08/09/2008 | Real Estate
Some homeowners use pamphlets, DVDS or newspapers to pass across information about their homes to prospective home-buyers or client . You can put up information about your intention to sell your home on the internet-- that is an effective strategy.
The Significance Of Anger Management Techniques
By: Stephen Campbell | 08/09/2008 | Self Improvement
Anger management techniques are put in place to give encouragement to individuals to work on their anger. Anger management programs are generally educational in nature and help the victim to take control of their emotions-- the anger.
Catalysts For Achieving Real Success
By: Stephen Campbell | 08/09/2008 | Self Improvement
There are 4 important things which everyone should etch within their heart and mind--success secrets., leadership development, business success, abundance and prosperity.
Effective Ideas For Achieving Personal Improvement
By: Stephen Campbell | 03/09/2008 | Self Improvement
First things first, meditation is an eminent factor in life; it's connected with energy healing technique which is just right for individuals who live with lots of tension from jobs or other areas of their lives.
Taking Advantage Of Distance Learning Online
By: Stephen Campbell | 03/09/2008 | Education
If you are in a career that is limiting because of the educational qualifications you have, you can make a significant change by taking up a distance learning program offered by prestigious Universities online.
Internet 
| Posted: 14-11-2007 | Comments: 
