Back to DMG
What is Two Tier Affiliate Program?
A compensation structure in affiliate marketing where affiliates earn commissions on their direct sales and on sales generated by affiliates they recruit.
Description
In digital marketing, a Two Tier Affiliate Program offers a unique way to maximize earnings by leveraging the power of a network. At its core, this program allows affiliates to not only earn a commission on their direct sales but also on the sales made by other affiliates they bring into the program. This creates a two-level earning structure. For instance, if you refer Affiliate B, you earn a commission on Affiliate B's sales. If Affiliate B then refers Affiliate C, you earn a smaller commission on Affiliate C's sales as well. This multi-tiered approach encourages affiliates to actively recruit others, enhancing the overall reach and revenue potential for the business. It's a win-win situation, increasing both the affiliate's and the company's earnings. The primary aim is to incentivize affiliates to build a team of sub-affiliates, thereby expanding the network and boosting sales across the board.
Examples
- Amazon Associates Program: Amazon's affiliate program allows for multi-tier earnings where primary affiliates can earn a small commission on sales made by sub-affiliates they recruit.
- ClickBank: This platform offers a two-tier affiliate program where affiliates can earn up to 10% commissions on sales made by other affiliates they refer to the network.
Additional Information
- Two tier programs can significantly increase an affiliate’s earning potential.
- They encourage the creation of a more extensive and engaged affiliate network.