A 2-tier affiliate program is one in which you earn money from your own sales, as well as from the sales of affiliates you recruit.
An important distinction here is that it is not multilevel marketing (MLM). In an affiliate program, you are only paid for sales made by your immediate recruits. In multilevel marketing, you are paid at many levels below you.
So, let’s take a look at some of the pros and cons of 2-tier affiliate marketing programs and what can make them some of the most profitable products to engage with.
1. You make money from the affiliate sales you recruit
This allows you to multiply your efforts. You can only make many sales per month in person, but if you also had 100 affiliates below you, all selling, think about how much more money you would make.
You only need one or two real entrepreneurs to earn a lot of money in a 2-tier affiliate program and, as there are so many people involved in this industry today, getting others to join is relatively easy if you make them fully aware of what they earn if they sign up for the program you promote.
2. You don’t need your own product
What makes this the best program for everyone involved is that all the configuration work has been done for you. The product is created, marketing materials are readily available, commissions are calculated and paid on your personal sales, as well as your team’s sales, and so on.
Products that do not require manufacturing (such as e-books) tend to be extremely successful in affiliate programs. The reason for this is that the merchant can pay a higher commission. Once the product is created, there are very few ongoing costs for the owner. Therefore, it is not uncommon to see them offering commissions of up to 50% -75%. This, in turn, makes selling the product much more attractive to cash-based affiliates.
A 2-tier affiliate program for a digital product tends to pay slightly less on the first tier, but offers the opportunity to earn a lot more money in the long run by recruiting people to sell on the second tier.
3. You get to work and create your own sales team
If you are the type of person who likes to work with other people, 2-tier affiliate marketing programs are great for that. Some of the best affiliate programs on the market today are those where you receive training that helps you work to develop a successful team and that team attitude can be taken to the highest level you desire.
For example, you can create contests within your own team to increase sales and help everyone make more money.
There are not many disadvantages to two-tier affiliate programs, but the biggest one that people tend to encounter is that affiliates themselves fall into the management trap. That’s when they start spending more time trying to develop their own team and less time on their personal sales.
Because affiliate marketing programs are so free and affordable, recruiting affiliates is extremely easy. The problem is getting them to a point where they themselves are successful. There is a high attrition rate in affiliate marketing, and you can waste an enormous amount of time helping people who will never have the drive to succeed.
Another disadvantage is that you are giving up a percentage of your personal sales to participate in the program. There is a lot of money that can be paid out, and by distributing it over 2 levels, you take the commissions out of the first level, but, as I said before, managed correctly, this shouldn’t be a problem.
There are many good 2-tier affiliate programs on the market today and if you like to communicate with people, they are an excellent way to work for your financial freedom.