Remember Me
forgot your password?

2 Tier Affiliate Programs Explained

How will refering new affiliates to an affiliate program make me money in the future? Thats where a 2 tier affiliate program works like magic!

Affiliates are getting cleverer by the day. So these days, affiliates know the difference between the different types of traffic they can get paid for. There are a lot of definitions though – CPM, CPC, CPA, CPL, CPD and many more.

CPM is impressions, when the publisher (the website owner) gets paid every time a banner is shown.

CPC is clicks, where the publisher (or email marketer and other marketers) gets paid every time a banner or text link is clicked upon.

The other ways of getting paid are grouped together under the term performance marketing – and this is where the term affiliate is most commonly used as well.

An affiliate is a marketer who sends visitors to another site using a variety of methods (such as placing banners or text links on their own site, buying sponsored listings on search engines, email marketing and many other different methods) and gets paid when an action happens. This action can 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) and many other variations.

Some in the Internet industry refer to performance based marketing as CPA (cost per acquisition), although the term is also sometimes used for specific types of campaigns such as leads or sales.

Now that we’ve got over the hard part, the rest is easy to understand.

The affiliate gets paid for sending visitors to a specific landing page where an action happens – either a lead, a sale, a download or some other sort of action that the advertiser requires. As an example, some advertisers are looking to build up their databases, so they pay for each opt in email address they receive, others want leads from specific locations, so they pay for zip codes, and then try convince the visitors after they fill in their zip code, to fill in a more detailed lead form.

The common denominator is that the affiliate gets paid when an action happens.

A 2 Tier affiliate program is simply finding new marketers to sign up under you to do EXACTLY what you are doing – sending visitors to different offers and getting paid when the visitors perform some sort of action. So why would you want other marketers to sign up under you to promote the same offers? Simple – you get paid a percentage of the amount the affiliate you refer gets paid? Sounds complicated?

Don’t worry, it’s not hard to understand. As an example, say John promotes 5 different offers on a single affiliate network. He gets paid for every lead, sale, email and zip code he generates from these different offers. John now tells Mark about the Network and gets Mark to sign up using a banner or text link that has John’s referral code built into it. Mark now signs up to the Affiliate Network under John and starts promoting various offers and advertisers from the Affiliate Network. These offers DON’T have to be the same offers that John is promoting. Mark can promote ANY of the offers on the Affiliate Network.

And this is the best part…

For any amounts that Mark gets paid, John receives a percentage of the amount over and above what Mark gets paid. So if Mark gets paid $1000 in Month 1, and the 2 Tier Affiliate program is paying 5%, then John would receive $50 just for referring Mark.

But it gets even better…

Some 2 Tier Affiliate Networks pay LIFETIME commissions. So John wouldn’t get a referral commission just for a month or a year – he receives it FOR ALL TIME.

If Mark becomes a super affiliate and starts generating HUGE commissions every month, John can just sit back and collect the checks as he referred him.

There are 3 important things to know when finding affiliates to sign up under you on 2 Tier Affiliate Programs:

Is the affiliate program or affiliate network credible, has proper tracking so your referrals are correctly tracked, has good campaigns and offers for the affiliates to promote so they actually do make money, and do they pay timeously? Assuming that the affiliate program or network is good, what percentage do they pay you on amounts that your referrals get paid? All programs vary so compare different programs to see what the industry standard is.

How long do you continue receiving referral commissions for? Some pay for a month, some for the lifetime, and of course there are many variations in between.

So do your homework and find a 2 Tier program that can make you money long in the future for the work you’re doing today.

Dennis White

If you are looking to make 100.00-300 a day with affiliate marketing then see http://www.zero2heromarketing.info

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Internet Articles
  • More from Dennis White

Virtual Real Estate Investing and Wholesaling Marketing Tips

By: Duncan Wierman | 11/12/2009
This articles discusses real estate lead generation, and various marketing tactics for obtaining more business

Alter Business Communication Process by Identifying the Proper SMS Provider

By: Mainhoonseo | 11/12/2009
Leading telecommunication associated software manufacturing companies now offering software for sending sms from pc. With a little self research anyone can get clear idea regarding these companies. The products are on offer and after online payment through secured online payment option anyone can start using the online sms sending tools. The reputed companies that have proven online sms delivery related products offer trial version of the bulk sms sending software.

Tips to Build Your Home Based Internet Business and Stay Motivated during Busy Times

By: Michelle Jayes | 11/12/2009
It is a fact of life that many internet home business owners also have full or part time day jobs, and find it very difficult at times to stay motivated and keep their online businesses growing towards success. It is possible to have a day job and build a successful business and spend time with the family and in this article we will talk about ways that this can be achieved.

FarmVille Secrets: Great Manual

By: Ted Baker | 11/12/2009
Farmville is an extremely fun, and mildly addicting, game that Facebook members can play. The game gives users a chance to build their own farms from the ground up. Users can create out buildings, raise animals, and grow a variety of crops.

Revolution in Information Delivery Across US with the Use of SMS Gateway

By: Mainhoonseo | 11/12/2009
Sending sms was indeed a costly venture and different companies hesitated to communicate directly to the consumers. But gone are the days and at present the bulk sms software providers have come up with cheap and lucrative options. This has stirred the rise of business text messaging and businesses from all verticals have introduced the use of text messaging.

New Business from Home- This Is Great

By: Suzanne E Morrison | 11/12/2009
When many people choose to start a new business from home money normally the reason why. This is especially true in today's down economy. Let's talk for a minute however about other things that can be very exciting about running a business of your own from home.

Give It Away For Free And Get Paid For It Later

By: Anna Lee | 10/12/2009
Do you know that there is actually an advertising strategy that your target clients love? It’s something that they look forward to. In fact, everybody probably is waiting for you to provide them with one every now and then.

Top Reasons Online Business Opportunities Are Perfect For Starting An Online Business

By: Cynthia Minnaar | 10/12/2009
When you want to start your own online business there are a lot of online business opportunities that are perfect for this. You just need to find the right opportunity to start your business with. There are some important reasons why these opportunities are perfect for anyone to use to start an online business. Learn what these reasons are now.

Video Marketing Traffic - How to Increase Traffic Using Video

By: Dennis White | 02/11/2009 | Internet
Video Marketing Traffic - How to Increase Traffic Using Video

Acne: Natural Hot Pepper Face Wash May Cure Acne

By: Dennis White | 28/10/2009 | Health
Acne: Natural Hot Pepper Face Wash May Cure Acne

Acne - Not Just A Problem For Teenagers

By: Dennis White | 28/10/2009 | Health
Acne - Not Just A Problem For Teenagers

Acne - Quick Tips

By: Dennis White | 28/10/2009 | Health
Acne - Quick Tips

Does Bum Marketing Still Work? By Dennis White

By: Dennis White | 22/10/2009 | Internet
Does Bum Marketing Still Work? By Dennis White

Work/Life Balance: Forming Healthy Habits

By: Dennis White | 20/10/2009 | Health
Work/Life Balance: Forming Healthy Habits

Working Out Is Not Like Doing Your Taxes

By: Dennis White | 20/10/2009 | Health
Working out and taxes both have serious consequences if they are ignored. With taxes, you can focus on them only once a year, but working out is a whole different story. The ramifications of not working out might show up slower, but in the long run, neglecting your workouts results in a much higher price to pay.

Working out effectively and efficiently without equipment

By: Dennis White | 20/10/2009 | Health
Working out effectively and efficiently without equipment

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.30, 6, w1)