Feb 06

To those who are not familiar with affiliate marketing, two-tier could be a new term to you but to those who are involved in this kind of money-making experience; it could mean a stream of income. Two-tier is an enticing feature of a particular affiliate program wherein, affiliates are allowed to sign-up additional affiliates below them. So that when the sub-affiliates otherwise known as second tier affiliates, earns a commission, the affiliate above receives a commission too.

In two-tier system, the first tier of commission is just like in the usual affiliate program. The sole difference is that it has an additional tier/s or sub-affiliates, whereby marketers also gain a commission once the people that the additional tiers referred to the program generate sales. Theoretically, affiliate programs can have multi-tier program with infinite number of tiers, however, there are practical limitations. As tiers increase, the affiliate program draws more webmasters who are mostly interested in gaining profit from other’s work and effort.

Two-Tier affiliate program is also recognized as Multi-Level Marketing. When you sign-up for an affiliate program, you are identified as the first tier and the person that you have recruited or encouraged to sign up is the second tier. If there are additional tiers, then the system can now be regarded as multi-level marketing (MLM). But today, MLM isn’t as effective and successful as it was several years ago. It is because at present, affiliates can freely select from thousands of affiliate programs and they can quickly switch from one program to another.
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