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What happens if you set up a two-tier program? Rather than trying to keep your commission pay outs small, you motivate your existing affiliates to recruit other people to your program. This will exponentially increase your affiliate sales. Would it not be worth paying referring affiliate a percentage of their sub-affiliates’ sales?
Now when Mr.Average joins your affiliate program this is what would happen. When he has saturated his market with your product,he would now promote your affiliate program to his customers and ezine subscribers. Many of Mr.Average’s customers and subscribers decide to join affiliate program. This in turn will motivate Mr.Average to continue promoting your products and recruiting affiliates.
Now what is situation? *Your income increases because of increased sales. *You have a much larger customer base to which you can sell ‘backend’ products. *An increase in your income because of life time loyalty of customers referred by your affiliate. *An army of sub-affiliates who will sell your products, and in turn promote your affiliate program to their customers and subscribers.
The little extra in affiliate sales commission pay outs will be more than compensated for by exponential sales increase. This is why two-tier affiliate program is a guaranteed winner and should be automatic choice for potential affiliates and affiliate program managers.
© John Lynch 2002
[ John Lynch is an affiliate of Internet Marketing Center – http://www.marketingtips.com/sr .x/650274]
John Lynch is an affiliate of the Internet Marketing Center - http://www.marketingtips.com/sr/t.x/650274