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Informative Articles

4 Steps to eBay Affiliate Success
Copyright 2005 Anthony Samuel Getting started with the eBay affiliate program is as simple as 4 easy steps. eBay knows you have a business to run, so they have created a step-by-step guide to see you down the road of success. With the eBay...
7 Shopping Tips For Smart Affiliate Marketing ROI
For affiliate Marketers (AMs) success is all about investing in effective advertising. That sounds simple enough. Except that, for every successful AM, there are dozens who never get past the "first base" of making an income (no matter how small)...
Affiliate Marketing: Action Learn Your Affiliate Business
Copyright 2005 Ron Passfield You want to develop your home-based business but feel isolated and unsure? One of the downsides of working for yourself is the loss of social interaction that frequently accompanies working for someone else. ...
Affiliate Marketing - The 10 Keys To Success
Copyright 2005 Michael Gates Where can an average person start a home business without investing any money? The wonderful world of affiliate marketing. For those looking to enter the world of affiliate marketing, there are some key concepts that...
Leverage Your Writing to Increase Your Affiliate Income
Copyright 2005 Ron Passfield There is a lot of advice around for anyone engaged in affiliate marketing, but much of it is un-focused and lacks integration. We are told that we need original, focused, keyword-rich content for our website...
 
What is a Tier in Affiliate Marketing?

The word "tier" shows up a lot in the affiliate marketing industry. In a general sense a tier is a step or level, but what does this mean in the context of affiliate marketing. The answer is: it depends.

Downline Levels
The most common meaning of tier is a carry-over from the compensation plans of network marketing companies that were in place before the Internet boom. When you introduce a new entrepreneur to the program, he is placed on your second tier. If that new entrepreneur then introduced his sister to the program, she would be placed on your third tier.

If the sister brought in a paying customer, she would receive a first tier commission. Her brother would receive a second tier commission, while you received a third tier commission (if the compensation plan included a third tier). In practice, an affiliate program can offer commissions on any number of tiers, although the vast majority of online affiliate programs only pay commissions on one or two tiers of activity.

Sales Volume
You would get a different picture of the word tier from Amazon's compensation plan, where it refers to your sales volume. (The following numbers don't reflect Amazon's actual compensation plan, but they serve as an example.) On the first $500 worth of merchandise you sell, you receive a 10% commission. Up to $500 is the first tier. The second tier is for sales up to $1500. If you manage to sell


between $500 and $1500, you will earn 11% commission. Each tier is an additional range of monthly sales in which you earn a higher commission (or receive other forms of compensation).

The Problem
The confusion arises when affiliate programs emphasize that they run a 2-tier compensation plan in their affiliate recruiting efforts. In most cases, this refers to the downline levels definition, and participants can expect to receive compensation based on the performance of affiliates they introduce to the program.

Occasionally, a program makes this claim when referring to sales volume tiers. This isn't inaccurate, but it is misleading. The managers of these programs are almost never intentionally trying to mislead. More often, they have thoughtfully crafted a compensation plan that rewards affiliates who perform well, and they want to announce that feature to all potential affiliates.

Who's Right?
You could make an argument for either definition of tier. If you're trying to communicate with other people in the affiliate industry, though, you need to give strong consideration to which meaning is generally accepted by most people. That is the downline levels definition.

About the Author

Clay Mabbitt writes articles about online income opportunities. He is the founder of a community of Internet entrepreneurs sharing knowledge and experience at http://www.affiliatescreen.com

 

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Now you can be part of the excitement by joining the iTunes Affiliate Program.* ... Apply to the Apple Store Affiliate Program, with a wide selection of ...
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Webmasters earn money with today's most effective online advertising technology, contextual advertising at a cost effective metric of CPC, PPC, CPM or CPV.
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Affiliate Summit 2007 West - Affiliate Marketing in Las Vegas ...
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