by: Kumar Sandeep
How will referring new affiliates to an affiliate program make me money in the future? That’s where a 2 tier affiliate program works like magic!
Associates are getting smarter by the day. So these days, affiliates know the difference between the different types of traffic they can get paid for. There are loads of definitions though � CPM, CPC, CPA, CPL, CPD and many more.
CPM is impressions, when the publisher (the website owner) gets paid every single time a banner is shown.
CPC is clicks, according to which the publisher (or email marketer and other marketers) gets rewarded every time a banner or text link is clicked upon.
The other ways of getting paid are grouped together under the term performance marketing � and this is where the term affiliate is most frequently used as well.
An affiliate is a marketer who pumps people to another site using a a range of methods (such as placing banners or text links on their own site, buying Paid listings on search engines, email marketing and many other different methods) and 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 in the Internet industry refer to performance based marketing as CPA (cost per acquisition), although the term is also sometimes used for specific types of campaigns such as leads or sales.
Now the tough part is over and easy part begins.
The affiliate gets paid for sending people to a certain landing page where an action occurs � either a lead, a sale, a download or some other sort of action that the advertiser requires. As an example, some advertisers are looking to build up their databases, so they pay for each opt in email address they receive, others want leads from specific locations, so they pay for zip codes, and then try convince the visitors after they fill in their zip code, to fill in a more detailed lead form.
The common denominator is that the affiliate gets paid when an action happens.
A 2 Tier affiliate program is simply getting new promoters to sign up under you to do accurately what you are doing � sending traffic to different offers and getting paid when some action is performed by a visitor. So why should you want other marketers to enroll under you to advertise the same offers? Simple � you get paid a percentage of the amount the affiliate you refer gets paid? Sounds complex?
Don�t worry, it�s not hard to understand. For instance, say John advertises 5 different offers on a single affiliate program network. He gets paid for every lead, sale, email and zip code he creates from these different offers. John now tells Mark about the system and gets Mark to sign up using a banner or text link that has John�s referral code built into it. Mark now signs up to the Affiliate Network under John and starts publicizing a variety of offers and advertisers from the Affiliate Network. These offers DON�T need to be the same offers that John is promoting. Mark can promote ANY of the offers on the Affiliate Network.
And following is a magic…
For any amounts that Mark gets paid, John obtains a percent of the amount over and above what Mark gets paid. So if Mark gets paid $1000 in Month 1, and the 2 Tier Affiliate program is paying 5%, then John would receive $50 just for referring Mark.
But there is something more…
Some 2 Tier Affiliate companies pay whole life commissions. So John wouldn�t get a referral commission just for a month or a year � he receives it FOR ALL TIME.
If Mark becomes a super affiliate and starts making massive commissions every month, John can just rest and take the checks as he referred him.
There are 3 important things to know when searching affiliates to sign up under you on 2 Tier Affiliate Programs:
Is the affiliate program or affiliate network trustworthy, has proper monitoring so your referrals are correctly tracked, has good campaigns and offers for the affiliates to promote so they actually do make money, and do they pay on-time? Assuming that the affiliate program or network is good, what share do they pay you on amounts that your referrals get paid? All programs vary so compare different programs to understand what the industry standard is.
How long do you keep on receiving referral commissions for? Some pay for a month, some for the lifetime, and obviously there are many alternatives in between.
So do your research and find a 2 Tier program that can make you money long in the future for the work you�re carrying out today.
About The Author
Kumar Sandeep is an internet marketer cum MBA (Marketing) student in London.
He earns a good amount of money as an Online Marketer.
Basically, He is from India and after successful completion of his studies, he wants to establish his business empire including online business.
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