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2 Tier Affiliate Programs Explained

2 Tier Affiliate Programs Explained
Copyright © Craig Warren
http://www.craigsonlinetips.com/

How will referring new affiliates to an affiliate program
make me money in the future? That’s 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 Johns 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 youre
doing today.

Resource Box:
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how. We supply free training to start your business. There
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