"Why Two Tier Affiliate Programs"
by Azam Corry
Affiliate programs that pay two tier commissions are those that
pay you a small percentage on every sale made by any new
affiliate you refer, in addition to the usual commission on your
own sales.
The vast majority of affiliate programs at present choose to
ignore the fact that many of those that join their program do so
via links from existing affiliates. In my opinion this is unfair.
The original referring member is the primary generator of any
additional sales made by the new affiliate, albeit indirectly.
The sales volume of most merchants would be a fraction of what it
is today without these sales. That is, sales generated by all
those that signed up after following a (purchasing) link from
another affiliate.
Even companies like Amazon.com, for whom it could be argued that
low product price prohibits two tier commissions, could at least
offer a one off "head hunter" payment.
In fact, Amazon are on a very good number - for Amazon! They pay
a single level, one time commission of 5 or 15% on a book
purchase (15% is only for a link to a specific title). For this
they get a lifetime customer that will, in all probability, buy
from them many, many more times! They might make thousands from a
customer they paid you $5 for ...
What a con!
Considering the number of purchases initiated by affiliates for
which they will never receive a single cent because of the
fallibility of current linking methods, I feel that two tier
commissions also offer a way to help redress the balance.
Sign-up, but...
Nevertheless you should join any single tier programs that you
feel can provide a good income and are compatible with your site.
You can put up a few banners, links and add text as well for
better results. However, whenever possible I would recommend that
you don't look to them as your primary source of income,
prioritize...
... save your real marketing energies for those that acknowledge
your contribution to the growth of their program by paying you in
cold, hard cash!
It's common sense really ...
Would you put all your effort into a program for which you'll
only get paid if your prospect buys, or put it into one in which
there still a possibility of earning something should the person
decide not to make a purchase, but thanks to your link, joins the
program instead?...
... no brainer! :-)
My favorite programs are almost all two tier programs and you can
probably expect the numbers of such programs to increase as
merchants begin to compete for affiliates.
Compete for affiliates?
Yes, sooner that you think, vendors will be bending over
backwards to try and get you to join their program!
The simple reason? Just about everyone and his mum seem to be
starting an affiliate program!
Be warned however ... if everyone makes the mistake of joining
these programs with the intention of simply signing up others to
sell for them, neither they nor anyone else will do very well in
the long run.
You should view the 2nd tier commissions as they were intended -
a valuable addition to your main source of income.
© 1999-2000 Azam Corry "Do it Better. Do it Faster. Do it Right!"
Online since 1998, Azam Corry can help you succeed. No-Bull
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