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Affiliate Programs Can Put Cash In Your Mailbox
Read this next line carefully: Affiliate Programs Are Like Free Money In Your Mailbox! What do I mean by this? Something is about to change. Actually, it's already changing and it involves the Internet! And you, my friend, are in the right place...
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Two-Tier Affiliate programs are best

‘Two-Tier Affiliate programs are best’

When you join an affiliate program or start an affiliate program of your own, you have to decide whether it will be a single tier or two-tier program.

With a single tier program you earn a
commission on any sales you make and that is it. If you are running your own affiliate program, you pay your affiliates a commission for any sales they refer and that is all.

However, with a two-tier program, affiliates are allowed to recruit sub-affiliates and are paid a small percentage of the sales these
sub-affiliates generate. For example, the affiliates may earn a 30% commission for selling product X himself; and when one of the sub-affiliates makes a sale, the affiliate may get a 10% commission as well.

This is very profitable for the affiliate as he can recruit an army of sub-affiliates, all earning commissions for him without any effort on his part except for the initial recruiting process.

If you are starting an affiliate program of your own should it be two-tier or single tier?
Some might shy away from the seeming
expense of a two-tier program. But is it really that expensive? Many affiliate
program managers make the wrong decision
on this.

Let’s look at an example.
You have an affiliate program up and running and an average affiliate joins your program. Mr.Average has a web site that receives average traffic. He also has an ezine with thousands of subscribers published monthly.
Mr. Average posts your affiliate links to his web site and promotes your product to his ezine list.

Initially, he generates good sales. However,a point comes when he saturates his market with your product and his sales begin to drop. He begins to lose interest in your program


and your sales remain small.

What happens if you set up a two-tier program? Rather than trying to keep your commission pay outs small, you motivate your existing affiliates to recruit other people to your program. This will exponentially increase
your affiliate sales. Would it not be worth paying the referring affiliate a percentage of their sub-affiliates’ sales?

Now when Mr.Average joins your affiliate
program this is what would happen. When
he has saturated his market with your product,he would now promote your affiliate program to his customers and ezine subscribers.
Many of Mr.Average’s customers and
subscribers decide to join the affiliate program. This in turn will motivate Mr.Average to continue promoting your products and
recruiting affiliates.

Now what is the situation?
*Your income increases because of increased sales.
*You have a much larger customer base to which you can sell ‘backend’ products.
*An increase in your income because of the life time loyalty of the customers referred by your affiliate.
*An army of sub-affiliates who will sell your products, and in turn promote your affiliate program to their customers and subscribers.

The little extra in affiliate sales commission pay outs will be more than compensated for by the exponential sales increase.
This is why the two-tier affiliate program is a guaranteed winner and should be the automatic choice for potential affiliates and affiliate program managers.

© John Lynch 2002

[ John Lynch is an affiliate of the Internet Marketing
Center – http://www.marketingtips.com/sr .x/650274]


About the Author

John Lynch is an affiliate of the Internet Marketing Center - http://www.marketingtips.com/sr/t.x/650274

 

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Content Menu
  • 101 affiliate research results affiliate program that pays

  • 10 essential qualities successful affiliates share

  • 10 great ways to fail at affiliate selling

  • 10 new year resolutions for affiliate marketers in 2003

  • 10 profit boosting tips to increase the success of your affiliate program

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  • affiliate marketing part i

  • affiliate marketing part ii giving a facelift

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  • are affiliates getting fired

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  • assoctrac 4 0 is an all in one affiliate management solution

  • automatic responder the secret of super affiliates success

  • avoid profit loss by ensuring your affiliates success revised

  • a beginners guide to affiliate marketing

  • a day in the life of an affiliate marketer

  • a few avoidable errors when promoting your affiliate

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  • characteristics of a super affiliate part 1 of 3

  • checklist for finding profitable affiliate programs

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  • dont even think about affiliate marketing until youve read this part 1

  • dont even think about affiliate marketing until youve read this part 2

  • dont get ripped off by affiliate program marketers

  • dont make these 4 common affiliate mistakes

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  • do you have what it takes to be a successful affiliate marketer

  • earning from ppc search engine affiliate programs

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  • effective affiliate marketing using articles

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  • finding affiliate programs 4 time saving research questions

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  • first steps to affiliate marketing success

  • five common mistakes affiliate marketers make

  • five fantastic ways to promote your affiliate program

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  • five things to look for to join any affiliate program

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  • focus for affiliate success

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  • four underground affiliate marketing secrets

  • free affiliate guide a 49 95 value

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  • free ways to promote your affiliate program

  • generate more sales in any affiliate program part five

  • generate more sales in any affiliate program part four

  • generate more sales in any affiliate program part one

  • generate more sales in any affiliate program part six

  • generate more sales in any affiliate program part three

  • generate more sales in any affiliate program part two

  • getting additional revenue through affiliate programs in the internet

  • getting rich from affiliate programs

  • getting started in an affiliate program

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  • google adsense profits mixed in with affiliate marketing online

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  • have you ever wondered what this whole affiliate marketing craze is all about

  • having an opt in list as an affiliate marketer is crucial

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  • how affiliates can have their own radio show

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  • how do you make money from an affiliate program

  • how do you treat your affiliates

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  • how to build an affiliate marketing business online part 1

  • how to build an email list as an affiliate

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  • how to build website seven steps for building optimized websites for affiliate programs

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  • how to make money from affiliate programs without spending a single dime on ads part i of ii

  • how to make money from affiliate programs without spending a single dime on advertising part ii of ii

  • how to make money online with affiliate programs

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  • how to profit from 2 tier affiliate programs and build a sub affiliate army in the next 24 hours

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  • how to profit from your affiliate

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  • how to promote affiliate programs with much more success part 1 your own promotion material

  • how to promote affiliate programs with much more success part 2 better downline performance

  • how to promote any affiliate program a simple 6 block formula

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  • increase profits with affiliate distribution channels for your digital goods

  • increase your affiliate commission by 1000 with e mail marketing

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  • index

  • integrate your affiliate programs to explode your affiliate income

  • internet marketing strategies setting up your affiliate program

  • introduction to affiliate marketing

  • is affiliate marketing easy

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