The Problem The confusion arises when affiliate programs emphasize that they run a 2-tier compensation plan in their affiliate recruiting efforts. In most cases, this refers to downline levels definition, and participants can expect to receive compensation based on performance of affiliates they introduce to program.

Occasionally, a program makes this claim when referring to sales volume tiers. This isn't inaccurate, but it is misleading. The managers of these programs are almost never intentionally trying to mislead. More often, they have thoughtfully crafted a compensation plan that rewards affiliates who perform well, and they want to announce that feature to all potential affiliates.

Who's Right? You could make an argument for either definition of tier. If you're trying to communicate with other people in affiliate industry, though, you need to give strong consideration to which meaning is generally accepted by most people. That is downline levels definition.

If product is unique in some way, affordable to masses, useable and needed and you can get in on ground floor then you could be onto a winner. In my experience, it’s product which brings in serious marketer not affiliate program. Think back to early days of mobile phones, when they use to be very bulky and expensive and people were saying “They’ll never catch on” However, marketer with vision saw mass potential and stuck in. Oh how I wish I’d been in this game then because now I wouldn’t be here typing this article, I’d be on a beach somewhere and my secretary would be typing this article. There are other types of product based affiliate programs out there which will also give you a chance for success, but finding it is like crawling through a minefield. Don’t simply sign up because it’s free membership or site looks professional, read all pages and understand ethics of owner. Consider product(s) on offer and think about your target audience. The product(s) should be affordable, useable, sellable, exciting and hopefully unique in its market. The affiliate program should be affordable and sustainable. Look at Compensation plan and consider how feasible it will be for you and your potential team, to reach profit line. Some plans may look impressive but sometimes they dazzle you with big Dollars. Look at amount of paid sign-ups required together with percentages paid and compare this to cost of program and cost of advertising needed to reach those required sign-ups. Work out how long it will take you to break even, for instance, if cost of program is $20 a month and you spend $20 a month on advertising you may get 1 or 2 sign-ups a month. If comp plan pays you $5 a sign-up you’ll need 8 sign-ups to break even but it may take you 4 to 8 months to get to that point. So it could cost you between $160 and $320 to get there.

Do your sums or you may never really break even?

You should look at make-up of down line and how it fits in with matrix/comp plan. Some down lines have legs, in that you build so far down and then line splits off and begins again. This usually happens when you reach another level in comp plan, but resulting effect can make it hard to progress to next level. Some have a straight down line so everyone who joins will be in your line. This can be misleading in that you believe that it’s your sign-up and you’ve earned money. However, it does allow you to assess popularity of program and help you decide if you should continue.

Now Image you’ve come across an affiliate site (Not hard to do with today’s Internet) Ask yourself following questions:-

Does site look impressive? Does it make you want to read on? Does it have a product that excites you? Could you use product? Could you sell product? Would you buy product? Is product affordable? Do I get product as part of affiliate program? Can I afford monthly payment? Do they have a worthwhile Compensation Plan? Do they have a matrix or a straight down line? How quickly will I break even? Can I make a profit?

SO CAN YOU SUCCEED BY MARKETING AN AFFILIATE BASED PROGRAM?

Find today’s ‘Mobile Phone’ with an affordable affiliate program, offering you a good compensation plan, workable matrix and responsive down line and answer is undoubtedly

‘YES’

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