Two tier affiliate programs operate similar to regular referral affiliate programs, They allow people to earn commissions by advertising a merchant’s site on their own website. People who participate in affiliate programs place a merchants ad and link on their web page and get paid on a pay-per-action basis. In other words, if the lead generates a sale, you will receive a percentage of the revenue. However, two tier affiliate programs offer an additional way to earn money. Not only do you earn your own commissions, but also commissions on sales generated by others you refer to the program.
The pay scales for two-tier referral programs can sometimes seem complicated. Generally, you earn a certain percentage for each of your own sale producing leads (tier 1), and a smaller percentage for the leads generated by affiliates you have referred (tier 2). Often, this pay scale is expressed in shorthand as (tier one/tier two) For example, if you earn 15% from each of your own sale generating leads and 5% from each of your referral’s, the shorthand would be written as (15%/5%). When shopping for a two-tier affiliate program, be sure to read the fine print about the pay scale structure, in order to get the best deal.
Affiliate programs are an easy way to earn extra income with little effort on your part. Referring others to the program can help them do the same. Plus, a two-tier affiliate programs rewards you for your referrals, as you are helping their company to grow. Overall, two-tier affiliate programs are easy to work with and produce a good earning potential.