Understanding The Multi-Tier Programs Of Affiliate Marketing Compensations

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January 20th, 2009 by Alan

Affiliate marketers use a number of methods for earning revenue through advertising products or services for specific website businesses. They make use of single-tier, two- tier and multi –tier affiliate programs to achieve their goal.

These different levels of tiers simply reflect how compensation will be paid to the affiliate marketer within the network.

Describing the various tiers of affiliate marketing programs

The single-tier program works fairly easy and straightforward. The affiliate signs up with a program to sell their goods or services. Commission will only be paid for the number of direct referrals the marketer makes to the company or if a direct sale has taken place. Two examples of single- tier programs are PPL (pay per lead) or PPC (pay per click).

The two- tier affiliate programs provide an added option of earning commission. Besides earning for direct sales and referrals, you can also get paid for sales and referrals made by affiliate programs that have signed up under you. The more recruits you have, the higher the commission payout.

The multi- tier affiliate programs basically work the same as the two- tier one. The difference between the two is that the commission structure differs. In multi- tier programs you can receive commission for affiliates that has signed up under you that goes several levels (or tiers) deep. This is what is commonly known as multi level marketing. It is of the best interest of the marketer to know exactly what the level of marketing he or she is involved in.

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