|Affiliate Revenue Information|
Why Two-Tier Affiliate Programs are Best
When you join an affiliate program or start an affiliate program of your own, you have to decide whether it will be a single tier or two-tier affiliate program.
With a single tier program you earn a commission on any sales you make and that is it. If you are running your own affiliate program, you pay your affiliates a commission for any sales they refer and that is all.
However, with a two-tier program, affiliates are allowed to recruit sub-affiliates and are paid a small percentage of the sales these sub-affiliates generate. For example, the affiliates may earn a 30% commission for selling product X himself; and when one of the sub-affiliates makes a sale, the affiliate may get a 10% commission as well. This is very profitable for the affiliate as he can recruit an army of sub-affiliates, all earning commissions for him without any effort on his part except for the initial recruiting process.
If you are starting an affiliate program of your own should it be two-tier or single tier? Some might shy away from the seeming expense of a two-tier program. But is it really that expensive? Many affiliate program managers make the wrong decision on this.
Let's look at an example. You have an affiliate program up and running and an average affiliate joins your program. Mr.Average has a web site that receives average traffic. He also has an ezine with thousands of subscribers published monthly. Mr. Average posts your affiliate links to his web site and promotes your product to his ezine list.
Initially, he generates good sales. However, a point comes when he saturates his market with your product and his sales begin to drop. He begins to lose interest in your program and your sales remain small. 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 the 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 the affiliate program. This in turn will motivate Mr.Average to continue promoting your products and recruiting affiliates.
Now what is the situation?
1) Your income increases because of increased sales.
2) You have a much larger customer base to which you can sell 'backend' products.
3) An increase in your income because of the life time loyalty of the customers referred by your affiliate.
4) 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 the exponential sales increase. This is why the two-tier affiliate program is a guaranteed winner and should be the automatic choice for potential affiliates and affiliate program managers.
© John Lynch
For details of the SiteSell affiliate program with lifetime customer commissions, residual commissions through renewals of Site Build It, and 2-tiers of income go to: http://affiliates.sitesell.com/finian.html
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We already know about wal mart because of their ads in local papers, on billboards, on the radio and TV. So finding a local Wal Mart is easy, and so should it also be easy to find your web site. Although you may not need to use radio and TV advertisements, you should still use offline promotion such as business cards or direct mail. Naturally, you want other web sites to put your billboard ad onto theirs. So that's our first lesson on how Wal Mart can teach us effective affiliate marketing. Now let's visit a Wal Mart store. Once we arrive at Wal Mart, we enter a huge parking lot. Your web site must also enable a lot of visitors. If your site is on a slow server, you may be losing customers. That's lesson #2. As soon as we enter Wal Mart, we are welcomed by a Wal Mart greeter. This greeter not only welcomes us to the store, but also offers help in pointing out where to find what you're looking for. That's lesson 3a and 3b. Your site should welcome visitors and provide navigation to all the products and services you offer. You can do this by simply including a graphic on your page that says "Welcome, Click Here to find what you're looking for" and have that link go to your site map. Beyond the greeter is a wide path that branches out to different areas of the store with banners overhead that tell you what you can find in those areas. Your site map should consist of main links, as well as sub-links to corresponding pages. Now we get to lesson 4, that each page of your site needs to have a topic, a main header, that defines what each page is about, as well as provide links, pathways to corresponding pages, because you'll notice that Wal-Mart arranges their store to group products that are similar. The hardware section is near the automotive center, housewares are near food items, lawn and garden items are near the hardware and pet supply areas, etc. But you can still get from one area to another. As you browse the shelves, you see more than one type of item. If you're in the grocery section; for example, you'll see many different types of beans. Canned beans, dry beans, even beans from different companies. That's lesson #5. You should offer your site visitors more than one choice. If your site offers auto loans, for example, offer your visitors new auto loans, used auto loans, even auto refinancing loans. And, you may want to offer them more than one choice for each type of auto loan. Afterall, visitors came to your site because they are shopping around... so let them shop and choose from multiple options. Just remember not to stick cheese products in your automotive section! Another thing you'll notice as you browse the shelves, which leads us to lesson #6... although the shelves are stocked full, it's still easy to pick out your favorite can of beans. This is because the shelves are stocked neatly and orderly. The ads you put onto your site should also be neat and orderly. Mixing in tall banners with short banners and having banners for totally different products and services can make shopping your site more difficult. For example, if you have a page about auto loans, you wouldn't want to put a tall auto loan banner right next to a short casino banner. Instead, put a tall auto insurance banner next to the tall auto loan banner. As you roam the store, you frequently encounter employess who can help you find items. This goes back to lessons 3a and 3b. Each page of your site should have a help link to your site map, or you should have a site search. Since Wal Mart makes it easy to find an employee to ask for assistance, that leads us to another lesson: Does you site offer customer service? Can visitors click on a button to ask you questions before they make a decision? Or do they simply exit your site? Lesson #7: How many times have you heard announcements in Wal Mart? They frequently announce specials over their public address system. We are not suggesting that you force visitors to endure slow loading sound files. But you can make sound an option. To see how you can use this marketing option, go to www.geocities.com/pulsarmarketing We have an example there on how you can offer your visitors the option to hear your audible promotion without forcing them to listen and making your pages load slow. All you have to do is create a wav sound file, and launch it by using a graphic or text link such as: "Click Here to listen to our promotion". The personal touch of a person's voice on your site can help increase your conversions. But don't force the loading of sound files. Instead, use the method we recommend at the URL below: www.geocities.com/pulsarmarketing Another thing you can do to tell your site visitors about specials or new products and services your site offers, is to offer them a free subscription to your newsletter. Now that we've toured Wal Mart and we're ready to make our purchase, we know our way to the checkout counter because Wal Mart makes it easy for us. That's lesson #8. Your site needs to make it easy for visitors to purchase. If you do not provide any of your own products or services and strictly use affiliate programs, you need to make sure your relevant banners and text links are at the top of the page, clearly and readily visible, to the people visiting that page. When we arrive at the checkout counter, besides asking us if we want paper or plastic and if we will be purchasing with cash or credit, the cashier asks if we found everything we needed. That's lesson #9. Make sure you offer your site visitors more options when they checkout. 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