17 {{ upvoteCount | shortNum }}
17 {{ upvoteCount | shortNum }}

2 tier affiliate programs?

by moneyblogger1
13 replies
Hey all,

Just a quick question: Is it possible to have a 2 tier affiliate program. Basically the same as network marketing in which you recruit people and earn a % if they make a sale.

Thanks

Brandon
#affiliate #programs #tier
  • Profile picture of the author Gene Pimentel
    There are MANY two-tier affiliate programs around. However, if you are intending to start your own two-tier affiliate program, be aware that it is against PayPal's TOS. You'll have to use a different payment processor that allows this.
    {{ DiscussionBoard.errors[2685724].message }}
    • Profile picture of the author Andy Fletcher
      Originally Posted by Gene Pimentel View Post

      There are MANY two-tier affiliate programs around. However, if you are intending to start your own two-tier affiliate program, be aware that it is against PayPal's TOS. You'll have to use a different payment processor that allows this.
      Are you sure?

      Rapid Action Profits only uses PayPal and it offers a 2 tier affiliate program and that's been around for ages.

      I'm not saying one counter example proves they do allow it but I was under the impression what PayPal don't allow is an affiliate program where being able to promote it is sold as a benefit of buying the product in the first place.
      Signature
      {{ DiscussionBoard.errors[2685804].message }}
  • Profile picture of the author Gene Pimentel
    I shouldn't have said it's "against their TOS" because they don't come right out and mention two-tiered programs, but PayPal is very touchy about any form of multi-tiered structure. If your salespage doesn't mention anything about two-tiered affiliate payments as an incentive to participate in your offer, you should be fine. Otherwise, it's very risky. Anything that sounds like a duck to PayPal, is considered a duck until proven otherwise.

    I have used RAP for years, and although it provides the facility to use a two-tiered system, you've got to understand what triggers PayPal's investigative process (ie. shutting down your account or freezing funds until they're ready to conclude). Using RAP's two-tiered function in itself is not a problem, it how to stay under PayPal's radar that can be problematic.

    Based on the OP's original post, it sounds like he wants to create a multi-level program, which is fine, but promoting it as such on a salespage can be a bad move if using PayPal.
    {{ DiscussionBoard.errors[2686179].message }}
  • Profile picture of the author moneyblogger1
    Hmmm.....I would have liked to advertise the 2 tier structure as a benifit to joining our affiliate program but it does not seem worth the risk.

    Is rap the best program to use to manage affiliate payments? I have never run an affiliate program outside of CB.

    Also, I would like our affiliates to promote our squeeze page and get paid on the entire back-end should the prospect buy anything. Is this possible with the RAP script?

    Thanks

    Brandon
    Signature

    Suck a video? Hate creating them? Let us do it for you. Get a custom video for 1/10th the industry standard price: http://www.angulusmarketing.com/Video.html

    {{ DiscussionBoard.errors[2686393].message }}
    • Profile picture of the author Sid Hale
      Hi Brandon,

      Originally Posted by moneyblogger1 View Post

      Hmmm.....I would have liked to advertise the 2 tier structure as a benifit to joining our affiliate program but it does not seem worth the risk.
      Advertising 2-tier commissions as a benefit to joining your affiliate program isn't a problem.

      The problem is in advertising that on the same page as you advertise a product for sale via Paypal.

      In other words, separate the product advertising from the affiliate program advertising.

      Set up a separate "sales" page for affiliate recruiting. Keep the two business/sales activities separate.

      That's good advice, regardless of who your payment processor is. No affiliate likes to promote a product that contains diversions. Any link on that page is a leak, and will reduce conversion stats. A link to your affiliate sign up form is one of the worst things you could put on a product sales page.

      Is RAP the best program to use to manage affiliate payments? I have never run an affiliate program outside of CB.
      Of course!

      Also, I would like our affiliates to promote our squeeze page and get paid on the entire back-end should the prospect buy anything. Is this possible with the RAP script?
      Absolutely!
      Signature

      Sid Hale
      Coming Soon... Rapid Action Profits (Pro)

      {{ DiscussionBoard.errors[2687721].message }}
      • Profile picture of the author moneyblogger1
        Originally Posted by Sid Hale View Post

        Hi Brandon,



        Advertising 2-tier commissions as a benefit to joining your affiliate program isn't a problem.

        The problem is in advertising that on the same page as you advertise a product for sale via Paypal.

        In other words, separate the product advertising from the affiliate program advertising.

        Set up a separate "sales" page for affiliate recruiting. Keep the two business/sales activities separate.

        That's good advice, regardless of who your payment processor is. No affiliate likes to promote a product that contains diversions. Any link on that page is a leak, and will reduce conversion stats. A link to your affiliate sign up form is one of the worst things you could put on a product sales page.



        Of course!



        Absolutely!
        Hey Sid,

        Thanks for the feedback. Is this complicated to set-up? I mean both the 2 tier structure and having the affiliate promote the squeeze page and get paid on the entire funnel?

        Thanks

        Brandon
        Signature

        Suck a video? Hate creating them? Let us do it for you. Get a custom video for 1/10th the industry standard price: http://www.angulusmarketing.com/Video.html

        {{ DiscussionBoard.errors[2694835].message }}
        • Profile picture of the author Sid Hale
          Not at all Brandon,
          Originally Posted by moneyblogger1 View Post

          Thanks for the feedback. Is this complicated to set-up? I mean both the 2 tier structure and having the affiliate promote the squeeze page and get paid on the entire funnel?
          Setting up a 2-tier structure is as simple as checking a box on the set up page, and
          entering the 2nd tier commission rate you want to pay.

          Affiliates automatically earn on the back end, because their link has been cookied on the
          customer's machine. If you want to help insure against the customer deleting their cookies,
          you can also capture the referring affiliate's ID to your list (from the squeeze page), so that
          you can always promote with their link (rather than a native link to your back end sales), and
          the affiliate gets cookied again, every time you send out a mailing to that list.

          Hope this helps,
          Signature

          Sid Hale
          Coming Soon... Rapid Action Profits (Pro)

          {{ DiscussionBoard.errors[2695887].message }}
          • Profile picture of the author moneyblogger1
            Originally Posted by Sid Hale View Post

            Not at all Brandon,


            Setting up a 2-tier structure is as simple as checking a box on the set up page, and
            entering the 2nd tier commission rate you want to pay.

            Affiliates automatically earn on the back end, because their link has been cookied on the
            customer's machine. If you want to help insure against the customer deleting their cookies,
            you can also capture the referring affiliate's ID to your list (from the squeeze page), so that
            you can always promote with their link (rather than a native link to your back end sales), and
            the affiliate gets cookied again, every time you send out a mailing to that list.

            Hope this helps,
            You are the man Sid!

            I have one more question if you don't mind:

            Can this all be automated? Meaning, If I have my autoresponder send out offers throughout the follow-up process will the affilaite get credit and thus paid if the prospect should buy?

            Thanks,

            Brandon
            Signature

            Suck a video? Hate creating them? Let us do it for you. Get a custom video for 1/10th the industry standard price: http://www.angulusmarketing.com/Video.html

            {{ DiscussionBoard.errors[2718256].message }}
            • Profile picture of the author Sid Hale
              Hi Brandon,

              Originally Posted by moneyblogger1 View Post

              Can this all be automated? Meaning, If I have my autoresponder send out offers throughout the follow-up process will the affilaite get credit and thus paid if the prospect should buy?
              Yes. This is normal behavior, and requires no special action on your part.

              If you send out "native" links in your autoresponder messages, your affiliates will get credit if their cookie is already on the subscriber's local machine (which it will be unless the prospect has deleted cookies, or subsequently followed another affiliate's link to your site).

              To protect your original affiliate against the above, most autoresponders allow you to set up a "custom" field to be captured at the time a visitor opts in. RAP provides the ability for you to capture the affiliate nickname, and pass it to that custom field via the opt in.

              Then, you would simply write the links in your autoresponder messages to pass that custom field as a querystring parameter at the end of your product links. The autoresponder will send each mail with the affiliate nickname that was captured when the visitor opted into your list.

              When your reader clicks that link... their machine is cookied, yet again, with the original affiliate's nickname.

              It's a little bit more work for you, but then you can advertise that as a benefit of your affiliate program on your affiliate sign up page. It shows that you are willing to do that "little bit extra" to ensure your affiliates' success, and will be appreciated by your affiliate sales force.
              Signature

              Sid Hale
              Coming Soon... Rapid Action Profits (Pro)

              {{ DiscussionBoard.errors[2721683].message }}
  • Profile picture of the author Ido Jansen
    Here are some affiliate programs I use that offer a 2-tier option

    Linkshare
    Clickbank (only if you refer a reseller i.e. product owner - not very attractive)
    E-junkie - same reseller only
    thesecondtier
    regnow

    One good program I use that doesn't have a 2 tier option is - Commission Junction
    (if anyone can prove me wrong here I would be thrilled )
    Signature
    Ido Jansen
    Author of the "Practical Internet Money guide"[B]
    {{ DiscussionBoard.errors[2694886].message }}
  • Profile picture of the author seasoned
    It was MY understanding that paypal allowed up to 2 tiers, but NO MORE. THAT was supposedly the reasoning behind the silly EA structure. The first cart I wrote had an N structure affiliate system. So if you sponsored a guy that sponsored a guy that sponsored a guy, etc.... Ad nauseam that you would STILL make money on the lowest tier! Of course, if it were a CHEAP product, they would have to sell a LOT before you had enough to be paid but, well.... It was actually EASIER and SIMPLER than the 2 tier fixed structure.

    But I wanted to have it in PHP. My first one was PERL. And I thought EA looked nice for a start. Also, my original gateway shut down and I STILL haven't really used the one they gave me to use instead, so I guess paypal is pretty much it for the moment. They SHOULD cut me some slack because, unlike most of you, My paypal account uses my OWN merchant account. I guess I will have to verify that they will treat me right. I have procrastinated WAY too much. BTW it looks like paypal express FINALLY supports SUBSCRIPTIONS!

    ALSO, there is a new feature in paypal that ***MANY*** are planning to use for a MULTITIER affiliate system!

    Steve
    {{ DiscussionBoard.errors[2721743].message }}
    • Profile picture of the author Sid Hale
      Hi Steve,

      Originally Posted by seasoned View Post

      It was MY understanding that paypal allowed up to 2 tiers, but NO MORE.
      Sorry, ...but I'm pretty sure that they DON'T.

      HOWEVER, my experience has been that they only have a problem with it, IF you advertise the multi-tier program (more than one level of compensation) on the same page with an order button that links to their site.

      Since your customers shouldn't care about your affiliate compensation structure, advertising it on your sales page is not a very focused sales message. Doing so, would (rightfully) make PP question whether you are advertising a product, or money-making scheme of some sort.

      They'll err on the side of caution, and put a hold on your account.
      Signature

      Sid Hale
      Coming Soon... Rapid Action Profits (Pro)

      {{ DiscussionBoard.errors[2721845].message }}

Trending Topics