3 tier affiliate programs

The multi-tier affiliate tracking system is a great way of encouraging your existing affiliates to recruit new affiliates and to reward them for their effort.

Suppose these 3 affiliates are setup with the following affiliate commission structure:

John tells his friend Jane who has a related web site about your affiliate program. He provides Jane with a link to join your affiliate program. This link is produced by Affiliate Wiz when John logs into his account. This link identifies his unique AffiliateID so he will get credit for referring Jane.

Affiliate Wiz supports multi-tier/multi-level affiliate tracking with up to 5 Tiers. With a multi-tier affiliate tracking system, not only are your affiliates rewarded for sending direct sales to your web site, they also get rewarded for encouraging other affiliates to join your affiliate program. As an example, supposed:

Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was ?2.16 billion in the United Kingdom alone. The estimates were ?1.35 billion in sales in 2005. [15] MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs. [16]

While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same model in the West. With many affiliates being paid a flat "Cost Per Day" with some networks offering Cost Per Click or CPM.

Relevant websites that attract the same target audiences as the advertiser but without competing with it are potential affiliate partners as well. Vendors or existing customers can also become recruits if doing so makes sense and does not violate any laws or regulations (such as with pyramid schemes).

Affiliate websites are often categorized by merchants (advertisers) and affiliate networks. There are currently no industry-wide standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.

In a two-tier affiliate program, or a multi-tier program (two or more levels), the first tier of commission is the same as in a regular affiliate program. The only difference is the additional tier(s), whereby marketers also earn a commission on sales generated by people they referred to the program. Sometimes compensation will be written in shorthand as tier1/tier2 (ex. 10%/5%).

Affiliate programs can theoretically have an infinite number of tiers, but there are practical limitations. As tiers are added, program attract webmasters who are more interested in profiting from the work of others, as opposed to doing any actual work themselves.

WP Engine affiliate program – two-tier program for a managed WordPress hosting company.

StudioPress affiliate program – two-tier program for a premium WordPress themes company.

It’s no secret that online casino programs can deliver some of the highest earnings of any niche for affiliates. Fortunately for us, the same applies for recruiting your fellow webmasters to their casino affiliate programs.

If you’ve been in affiliate marketing for any length of time, you’ll know that two tier programs often mean low-rent brands peddling poor products with worse payouts.

Another major poker affiliate network for big poker brands.

  • Uffiliates

    While most CPA offers pay a fraction of most of the CPA deals on this page, they are worth investigating for one good reason: the most successful CPA affiliates send such ENORMOUS volumes of conversions that subaffiliates can still earn sensational sums recruiting them.

    @Micah: You can’t change who the 2nd tier affiliate is (grandparent affiliate), but you can change the tier 1 affiliate (immediate parent affiliate) associated with a user. You’re looking at the tiers from the wrong direction – you should see it from bottom-up.

    For eg. consider this:

    The 2-tier or “n” tier setup is the exact same as the 1-tier setup.

    Now, normally a 1-tier affiliate program would stop there, and that would be the end of affiliate commissions for that purchase. But you have set up 2 tiers.

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