Difference between One and Two Tier Affiliate Programs

 

Affiliate marketing can tricky and challenging at times. Here're some ideas on the two types of an affiliate program that is commonly being practice.

One-Tier Affiliate Programs- You pay your affiliate for anyone they convince topurchase your product.The one tier program is pretty straight forward. The affiliate gets a percentage, or a set amount, for every person theyget to purchase yourprogram. Thisis especially ideal if you are just starting out,and thisis yourfirst time ever owning your own affiliate program.

I recommend trying it this way first, until you are comfortable and youraffiliate is running smoothly.

Two-Tier Affiliate Program- Your affiliates get paid a small percentage of any sales generated by affiliates they recruit to become affiliates of your program.
 A two-tier program is similar to an MLM (multi-level marketing) model. In this instance, your affiliates goal would be to recruit sub-affiliate to make sales.

So lets's say your affiliate recruits five sub- affiliates.
For every sale a sub affiliate makes, youhave topaythe sub affiliate, and your initial affiliate.

That can really add up to you paying out a lot of money, which will surely bite into your profits.

However, what if one of the sub-affiliate had an opt-in subscriber list of 50,000 people, to whom he/she promoted your product? Then the sheer number of buyers would have so many sales your profit would sky-rocket and it wouldn't matter!

And what if the same sub-affiliate promoted your affilite program and tried to recruit his/her own sub-affiliate? That system can just keep repeating itself until you have plenty of affiliates each making so much money,you don't even know what to do…!

Any awesome experiance on affiliate marketing one and two tier affiliate program?