What is a Tier in Affiliate Marketing?

Written by Clay Mabbitt

The word "tier" shows up a lot inrepparttar affiliate marketing industry. In a general sense a tier is a step or level, but what does this mean inrepparttar 102362 context of affiliate marketing. The answer is: it depends.

Downline Levels The most common meaning of tier is a carry-over fromrepparttar 102363 compensation plans of network marketing companies that were in place beforerepparttar 102364 Internet boom. When you introduce a new entrepreneur torepparttar 102365 program, he is placed on your second tier. If that new entrepreneur then introduced his sister torepparttar 102366 program, she would be placed on your third tier.

Ifrepparttar 102367 sister brought in a paying customer, she would receive a first tier commission. Her brother would receive a second tier commission, while you received a third tier commission (ifrepparttar 102368 compensation plan included a third tier). In practice, an affiliate program can offer commissions on any number of tiers, althoughrepparttar 102369 vast majority of online affiliate programs only pay commissions on one or two tiers of activity.

Sales Volume You would get a different picture ofrepparttar 102370 word tier from Amazon's compensation plan, where it refers to your sales volume. (The following numbers don't reflect Amazon's actual compensation plan, but they serve as an example.) Onrepparttar 102371 first $500 worth of merchandise you sell, you receive a 10% commission. Up to $500 isrepparttar 102372 first tier. The second tier is for sales up to $1500. If you manage to sell between $500 and $1500, you will earn 11% commission. Each tier is an additional range of monthly sales in which you earn a higher commission (or receive other forms of compensation).

Can you succeed marketing an affiliate based program?

Written by Ian Bosworth

Internet Marketing can be an enjoyable and profitable experience, but it can also be very frustrating, time consuming, money draining and anti social.

So why do we keep putting ourselves through all this pain?

Well, I’m sure that for everyone there is a different answer depending on your driving force, but for me it’srepparttar thought that one day I’ll succeed and make a tidy income. God knows how many ‘Get Rich’ schemes are out there but experience has taught me that 95% of them are simply schemes for makingrepparttar 102361 owner rich and notrepparttar 102362 affiliate. Onrepparttar 102363 plus side, they do teach yourepparttar 102364 pitfalls of Internet Marketing and hopefully move you that little further downrepparttar 102365 line towards your ultimate goal. You may think that this article is simply a moan aboutrepparttar 102366 chaos which is ‘Internet Marketing’ but I assure you that’s notrepparttar 102367 case. My aim is to pass onrepparttar 102368 good and bad of this type of venture and to hope that I can help someone to avoidrepparttar 102369 many obstacles and reach there goal reasonable unscathed.

Can you make money from a program which doesn’t sell a tangible product?

Time and time again you’ll see these type of programs – They’ll say pay $5 as a one off payment and we’ll give you thousands in return. The word that comes to mind is ‘Pyramid’. Logic tells you that $5 can never become $1,000 without you sponsoring thousands of people and then they’ve got to sponsor thousands of people and so on. At some point you run out of people andrepparttar 102370 system fails. You loose your money butrepparttar 102371 owner makes a tidy sum. Mayberepparttar 102372 answer is to invent your own ‘Get Rich’ scheme but then, how do these people sleep at night? Personally, these schemes should be outlawed because all they do is serve to underminerepparttar 102373 ethics of Internet Marketing. So, can you make money from these types of programs – My experience tells me ‘No’ Should you avoid them? Most certainly ‘Yes’

What about programs where you pay a monthly fee but again there isn’t a product?

These are very muchrepparttar 102374 affiliate based programs and do have some merits. They tend to offerrepparttar 102375 same, old same old, free resource tools, safe lists to join and a type of ad co-op guaranteeing leads and/or sign-ups. Of course,repparttar 102376 tools are usually obsolete in today’s market,repparttar 102377 safe lists are more geared towardsrepparttar 102378 owner making an advantage by you joining using their affiliate ID andrepparttar 102379 guaranteed leads are too old to be of any use. I’m sorry for being a cynic but I’m sure there are people out there who are reading this article and nodding there head because they’ve been there.

Onrepparttar 102380 plus side these programs do have a sustainable growth because ofrepparttar 102381 monthly income and so getting personally sponsored affiliates can recoup your loses over time. The problem however, is that people tend to be reticent to join because ofrepparttar 102382 fees and then become despondent when they struggle to get affiliates for themselves. Most ofrepparttar 102383 programs offer free membership and ‘Yes’ you will get tens to hundreds of people joiningrepparttar 102384 free program butrepparttar 102385 ratio from free to paid is very poor.

People enter these programs believing, that by simply joining, they will be given thousands of Dollars for doing zilch! Like I said these programs do have there merits and if you stick in and spend loads of your money on advertising, hours of your time promoting to rotators and safe lists then you may come outrepparttar 102386 other side breaking even or with a small profit. Don’t get me wrong I still have some involvement with these types of programs – Why? – Because I believerepparttar 102387 hype that I can berepparttar 102388 one success story and come outrepparttar 102389 other side, a rich man!

What aboutrepparttar 102390 programs where you pay a monthly fee and promote a product?

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