8 {{ upvoteCount | shortNum }}
8 {{ upvoteCount | shortNum }}

Should you go 1 or 2-Tier With Your Affiliate Program?

by Steve_Nam
6 replies
Anybody have any perspective to share on 1 vs 2 tier affiliate programs for
the internet marketing niche? Specifically, for membership sites with recurring commissions?

1) Which do affiliates get more excited about? 1 tier or 2 tier?
2) What commission % rate should you give for a recurring monthly commission to keep affiliates happy?
For both a 1 tier and for a 2 tier program, what are the best (but still fair for you) commission rates?

Thanks for your insight, it would be much appreciated.

- Steve
#2tier #affiliate #program
  • Profile picture of the author rondo
    You need to see if your payment processor allows 2-tier. Some view it as as a type of MLM.


    Andrew
    Signature
    Online courses
    {{ DiscussionBoard.errors[244351].message }}
  • Profile picture of the author gjhough
    Originally Posted by Steve_Nam View Post

    1) Which do affiliates get more excited about? 1 tier or 2 tier?
    2) What commission % rate should you give ...
    Steve, great question. Hope you get more responses. I get excited about the marketing opportunities of 2-tier and the commission rate does not play a huge role for me. Obviously you would want to give a away enough commission to attract the marketer to promote your product. If your percentage commission for 1 tier would have been 50% I would set the percentages for a 2 tier commission structure as follows:

    tier 1 - 30% = this should keep a 1 tier marketer happy
    tier 2 - 20% = this should make a 2 tier marketer excited.
    {{ DiscussionBoard.errors[3366125].message }}
  • Profile picture of the author tpw
    As an affiliate, I love two-tier.

    But as a seller, I would have to forgo using PayPal, because they prohibit two-tier affiliate programs, because it looks like a MLM format, which they also prohibit.

    Unless you will always utilize your own merchant account, then one-tier is the best you are going to want to do.
    Signature
    Bill Platt, Oklahoma USA, PlattPublishing.com
    Publish Coloring Books for Profit (WSOTD 7-30-2015)
    {{ DiscussionBoard.errors[3366238].message }}
  • Profile picture of the author paulie888
    I think many affiliates would love a two-tier system, as that enables them to receive residual and passive income just through putting in some initial effort.

    This is just my opinion, but I think it'd be great to pay out around 50% commissions on the 1st tier, and 10-20% on the 2nd.

    Paul
    Signature
    >>> Features Jason Fladlien, John S. Rhodes, Justin Brooke, Sean I. Mitchell, Reed Floren and Brad Gosse! <<<
    {{ DiscussionBoard.errors[3366258].message }}
    • Profile picture of the author tpw
      Originally Posted by paulie888 View Post

      I think many affiliates would love a two-tier system, as that enables them to receive residual and passive income just through putting in some initial effort.

      This is just my opinion, but I think it'd be great to pay out around 50% commissions on the 1st tier, and 10-20% on the 2nd.

      Paul

      One of the affiliate programs I have made the most money promoting is a two-tier system.

      I have 16 affiliates below me, two of whom generate 100% of my tier-2 commissions.

      I generate 40% of the total commissions myself, and the other 60% comes from sales generated by my tier-2 affiliates.

      With this particular program, I have earned about $16,000 over the last 4 years.

      Yeah, it is not much, but on an hourly basis against what I have invested into it, it has returned to me about $800 for every hour I have put into it.

      That reminds me... I need to put some more hours into promoting that program.
      Signature
      Bill Platt, Oklahoma USA, PlattPublishing.com
      Publish Coloring Books for Profit (WSOTD 7-30-2015)
      {{ DiscussionBoard.errors[3366351].message }}

Trending Topics