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The Multi-tier Affiliate Marketing Program
The majority of affiliate marketing program is only one-tier.  But there are several affiliate marketing programs that are now multi-tiered.  How can this type of affiliate program help both the affiliates and the online business?

The practice of affiliate marketing is aimed at promoting the products of an online business to potential consumers.  Such promotion is being conducted when the affiliate creates a website which will have a link to the website of the online business.  In other words, the website of the affiliate is one advertisement for the online business.  And the affiliate can be called a publisher.

Most of the affiliate marketing programs are basic one-to-one relationship between the online business and the affiliate.  This type of affiliate marketing program is described as one-tier.  But there is another type of affiliate marketing program in which there are sub-affiliates.   This type is called the multi-tier affiliate marketing program.

In a multi-tier affiliate marketing program, one affiliate may sign up with one advertiser of an online business.  This affiliate will be compensated according to what has been agreed between the affiliate and the advertiser.  That is, compensation may be given when a visitor referred by the affiliate explores the website (pay-per-click) or registers as a subscriber (pay-per-lead) or purchases the product (pay-per-sale).

Aside from this compensation set-up, the multi-tier affiliate marketing program allows another avenue of earning income.  And this is through the sign-up of sub-affiliates.  This happens when the visitors referred by the affiliate decided to become an affiliates, too.

These new affiliates will be using the sign-up codes of the first affiliate and they become the sub-affiliates.  The sub-affiliates will also be earning incomes in the same way that the first affiliate earned compensation.   That is, when a visitor referred by one sub-affiliate purchases the product of the online business, this sub-affiliate will be paid. 

At the same time, the first affiliate will also earn a commission out of the sales made from the visitor of the sub-affiliate.  The commission, of course, will be considerably lower.   Yet, such small amount of commission may grow exponentially.  This is because one sub-affiliate is also entitled to have his own sub-affiliates.

This means that the first affiliate will earn commissions from other affiliates who signed-up with his sub-affiliate.  Such a set-up will go on almost endlessly and there will be no limits to the number of levels or tiers of affiliate sign-ups.

With the multi-tier affiliate marketing program, an affiliate may be earning commissions out of the activity of sub-affiliates whom he does not personally know.  And sales will be continuously generated for the online business.  Such is the financial magic of this Internet marketing practice called affiliate marketing.

 
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