Before we start the discussion about how to squeeze more from two tier affiliate programs, let give a short definition to what it is. In 2 tier affiliate program affiliates are allowed to recruit affiliates below them. So, the downline does not end up on the people whom affiliates recruited personally. If your personal affiliates do the job and bring more people, you also get paid.
Some say that 2 tier affiliate programs are Multi-Level Marketing (MLM). This is true, but in MLM usually there are usually many levels, sophisticated rules for getting the commissions accounting and many other high math stuff. 2 tier is a lot simpler.
For example, it can go like this. For all people whom you recruited personally you will receive 50% commissions, and for the purchases generated by your direct affiliates you will get 25% commissions.
So, on the one hand it seems that with 2 tier program you just need to recruit some people and they will do the rest of the job, and you’ll be sitting on their fruits and milking 2nd tier commissions. You need to work with your affiliates and make them crazy about making more sales for them and, hence, for you.
Plus you must also be sure that the affiliate software that manages this 2 tier program works like the Swiss watch, because many programs don’t track all sales. And if you can manually control the sales recruited personally, then doing the same for the people whom recruited your affiliates is impossible. It will eat all your time and nerves.
For the vendor or owner of the product 2 tier seems to be a winner. And when the program is properly setup with promo materials ready – it is really like this.
The reasons are obvious:
- vendor’s profit increases thanks to the 2nd tier
- vendor gets a bigger customer base
- you have more active affiliates and more affiliates in general.
The biggest problem is to make your affiliates understand and feel and become ready to recruit more affiliates. Not simple sales (which is of definitely great), but recruit people and work with them to recruit other people, etc.
Usually the key to success lies in:
- giving good commissions
- making affiliating easy (promo materials)
- explaining how affiliates can educate other affiliates
When all these elements come together in ideal proportion, then 2 tier affiliate program is likely to generate you lots of sales and build a huge list of clients and base of active affiliates.
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