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10 Profit Boosting Tips To Increase The Success Of Your Affiliate Program
1. Develop credible, benefit rich ad copy, along with a well designed site to increase your sign ups, and also your affiliates' conversion rates. 2. Submit your affiliate program to directories that list affiliate programs. These directories...
Getting Rich from Affiliate Programs
Some times it pays to work with others. In this article we will discuss how to make money with affiliate programs.
Affiliate programs (also called Referral Programs or Partnership Programs) are essentially commission-based sales schemes. You...
Is Your Affiliate Website Targeted?
Is Your Affiliate Web Site Targeted? You know the basics of Affiliate Marketing. Create a web site, choose affiliate programs to compliment your site, and then promote. If you start your affiliate marketing business like this, you are missing an...
Managing Your Affiliate Program: Software Systems vs. Network Systems
There are numerous aspects to starting an affiliate program. You've got to do all kinds of research and footwork to get the ball rolling, and the work doesn't stop there. Assuming that you've already done your research, found a great product, and...
Super Affiliate Strategies Part 3
In our previous Super Affiliate Strategies articles, we went over ways to increase your web site's click through ratio. Today we are going to take an entirely different approach, this time we are going to be promoting affiliate programs outside...
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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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