Using 2-tier affiliate programs to your advantage

One of the ways to have an additional stream of income, for an affiliate is to have other affiliates under them. Also known as two-tier affiliate programs, these programs constitute another stream of income, for affiliates. A very innovative concept where in Affiliates are allowed to sign up, other affiliates under them. And how do affiliates make money? Well, whenever a sub affiliate makes a sale, the master affiliate also makes money on that sale. Isn’t it interesting to have affiliates who will make efforts to make a sale apart from your own efforts?

There are however certain limitations, to this 2 tier systems, though practically there are no limitations, on the number of tiers. As the number of tiers increase, the program draws people who are just trying to make some easy money, without any input of efforts. Commissions that are handed out, are the same as that of a 1-tier affiliate system, except that everyone in the pyramid, makes commissions here i.e. the first tier affiliate, gets a commission on every sale, that the second tier affiliate makes.

How effective, these multi tier affiliate programs are, is always a question as affiliates have a lot of options, in terms of affiliate programs and they tend to keep hopping from one program to the other. These multi tier programs, are also known as multi level marketing . On signing up for an affiliate program, you are labeled as the first tier and any one who signs up under you, is labeled accordingly. The 2 tier affiliate system is also known as MLM(Multi Level Marketing).

What would you need, if you are planning to have a 2nd tier ? You need a Merchant who would generate consistent streams of high quality products, gives you commissions on time and offers you a real time tracking. A proven and tested advertising kit, is needed and ofcourse a high visitors to sales conversion ratio. Do not depend on your second tier to generate, the entire income for you.

Do not have a second tier, unless and until you have a great affiliate merchant, who treats his affiliates well. Ensure that the Web Merchant has a great, user friendly website, that can be accessed anytime and also help you monitor statistics, including sales and visits. Never ever choose an affiliate program that will damage, your credibility and provides poor results. It doesn’t take much for the Visitor to find out the truth, about the program as well as the product. Hence it is really important to pick up good programs, which will enable you to have multiple tiers of affiliates.

Avoid those programs, which offer incentives to sign on more affiliates below you, as they emphasize more on adding affiliates, than on sales of products. Sooner or later you will realize, that you have lost a lot of dollars, in sales income. It is like being penny wise and pound foolish.

Decide on what you want, out of your affiliate programs. Is it worthwhile, to have single tier or two tiered affiliate program? While being a single tiered affiliate has its advantages, the second tier programs offer benefits, that a single tier program cannot.

The 2 tier structure gets you a broader customer base, which would not have been possible, with just you alone. It is like having a sales team, on a commission basis. Because of the large customer base, your sales also increase, due to large number of referrals, from your second tier. More the number of referrals, more stable the income becomes. That would also mean a loyal customer base, which could essentially bring in repeat business. Apart from this, you always have your army of sub-affiliates, who keep promoting your product and services.

2 tiers are certainly here to stay. They offer an advantage, which cannot be matched by other programs. These programs can help you in multiplying, your profits as well as for your sub-affiliates. Remember, that this has been a proven winner and should be the choice for beginners, as well as affiliate program managers.