2-Tier Affiliate Programs Explained
How will referring new affiliates to an affiliate program make me money in the future? Here's where a 2 tier affiliate program works like magic!
Affiliates are getting smarter every day. So, nowadays, affiliates know the difference between the different types of traffic they can get paid for. There are many definitions in CPM, CPC, CPA, CPL, CPD and many more.
CPMs are impressions, when the publisher (the website owner) is paid every time a banner is displayed. CPC is clicks, where the publisher (or email marketer and other marketers) gets paid every time a banner or text link is clicked.
The other ways to get paid are grouped under the term performance marketing and this is where the term affiliate is also most commonly used.
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 site, buying sponsored ads on search engines, email marketing, and many other different methods) and pays 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 through the hard part, the rest is easy to understand.
The affiliate is paid for sending visitors to a specific landing page where an action occurs, be it a lead, a sale, a download, or some other type of action requested by the advertiser. For example, some advertisers are trying to build their databases, so they pay for each email address they receive, others want leads from specific locations, then pay for zip codes and then try to convince visitors after they enter your code. postal, to fill out a more detailed contact form.
The common denominator is that the affiliate gets paid when an action occurs.
A 2 tier affiliate program is simply about finding new sellers who sign up under you to do EXACTLY what you're doing, sending visitors to different offers, and getting paid when visitors take some kind of action. So why would you want other marketers to sign up under you to promote the same offers? Are you only paid a percentage of the amount paid by the referred affiliate? Sounds complicated?
Don't worry, it's not hard to understand. For example, let's say John promotes 5 different offers on a single affiliate link. You get paid for every lead, sale, email, and zip code you generate from these different offers. John now talks to Mark about the network and convinces Mark to sign up using a banner or text link with John's referral code embedded. Mark now joins Affiliate Network under John and starts promoting various Affiliate Network offers and advertisers. These offers do NOT have to be the same offers John is promoting. Mark can promote ANY of the offers on the affiliate network. and that's the best part
For whatever amount Mark is paid, John receives a percentage of the amount in addition to what Mark is paid. So if Mark gets paid $ 1000 in 1 month and the 2 tier affiliate program pays 5%, John will get $ 50 just for referring Mark.
But it still gets better
Some 2-tier affiliate networks pay commissions FOR LIFE. So John wouldn't get a referral fee for just a month or a year, he gets it ALL THE TIME.
If Mark becomes a super affiliate and starts earning HUGE commissions every month, John can just sit back and cash the checks as he reported. There are 3 important things to know when finding affiliates to sign up for 2 tier affiliate programs:
Is the affiliate program or affiliate network credible, do you have proper tracking so that your referrals are tracked properly, do you have good affiliate campaigns and offers to promote so that they actually make money and pay on time? Assuming the affiliate program or network is good, what percentage do they pay you on the amounts received from your referrals? All programs vary, so compare the different programs to see what the industry standard is.
How long do you continue to receive referral commissions? Some pay for a month, others for life, and of course there are a lot of variations in between. So do your homework and find a 2-tier program that will earn you long-term money in the future for the work you are doing today.
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