Two Tier Affiliate Programs
How will referring other affiliates (besides yourself) to an affiliate program make me money? That’s where a 2 tier affiliate program comes in!
Affiliate companies are getting smarter by the day, but smart affiliates know the types of traffic they can get paid for.
First, let’s talk about some of the definitions…
CPM, or “Cost Per Thousand” is impressions, when the the website owner gets paid every time a banner is shown.
CPC, or “Cost Per Click” is clicks, where the publisher gets paid every time a banner, image, ad, or text link is clicked upon.
The other ways of getting paid are grouped together under the term performance marketing… this is where the term affiliate is most commonly used.
An affiliate is a marketer who sends people or clicks to another website using different methods, like placing banners or text links on their own website, buying sponsored ads on search engines, email marketing and many other different methods. The marketer 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 people refer to performance-based marketing as CPA (cost per acquisition or action)although the term is also used for campaigns including leads or sales.
Now that we’ve got over the hard part, the rest of two tier affiliate programs is simple! The affiliate gets paid to send visitors (or clicks) to a specific webpage where an action happens. It can be a lead, a sale, a download or another action that the advertiser requires.
For example, some advertisers happily pay for each opt in email address they receive. (you know, all those pesky lists you’re on!) Others want leads from specific locations, so they pay simply for a zip codes! After they fill in their zip code, they take them to a landing page, or “bridge page” to fill in a more detailed lead form.
The common denominator is that the affiliate marketer gets paid whenever an action happens… thuse CPA, or “cost per action“.
So what is a “two tier affiliate program?
A 2 Tier affiliate program is simply finding other marketers to sign up under you to promote the same product.
So why the heck would you want other people to sign up under you to promote the same offers you are? Simple! Because you get paid a cut of the amount he or she gets paid as well!
For example, say Joe Billy Bob promotes 5 different products on an affiliate network. He gets paid for every lead, sale, or whatever he generates from these different offers.
Joe Billy Bob now tells Markie Mark about the program and gets Markie Mark to sign up using a link that has Joe Billy Bob’s referral code built in. Markie Mark starts promoting various offers and products from the Affiliate Network.
They do not have to be the same offers that Joe Billy Bob is promoting, he can promote ANY of the offers he wants that he feels he’ll make bank with. And the great thing is, that whatever Markie Mark gets paid, Joe Billy Bob receives a percentage over and above what Markie Mark gets paid.
So if Markie Mark gets paid $1000 in Month 1, and the Two Tier Affiliate program is paying 5%, then Joe Billy Bob would receive $50 just for referring Markie Mark! Simply put, the second tier person personally makes the SAME percentages and profits that the first person does, and they both benefit. Nobody loses. But it gets even better. 🙂
Some 2 Tier Affiliate Programs pay LIFETIME commissions on top of it. SO if Markie Mark becomes a super affiliate and starts making HUGE commission checks every month, Joe Billy Bob can just sit back and collect the checks since he referred him.
Here is another article explaining what is a two tier affiliate program, if you need a bit more.
Before jumping in though, you want to make sure the affiliate network is credible, has proper tracking so your referrals are correctly recorded, has good products and offers so the affiliate marketers actually make money, and that they pay on time!
All programs vary some, so compare different programs and see that you’re a good fit. Do your homework and find a 2 Tier affiliate program that can make you great money long into the future, then find some good people to bring along with you.Follow my blog with Bloglovin