Affiliate programs are a powerful way to grow your business and make more money. But not all affiliate programs are the same! Two-tier affiliate programs are one of the more commonly used models, but they’re often misunderstood, so let’s take a closer look at how they work, why you should consider one, and what to keep in mind when choosing an affiliate program to promote.
Affiliates are people who earn a commission by promoting your products or services. They’re like digital salespeople, and usually have a blog or website where they share their referral links. When someone clicks on one of these links and makes a purchase, the affiliate earns a commission.
What are two-tier affiliate programs?
A two-tier affiliate program is an arrangement in which an affiliate is rewarded not only for the traffic they bring to a merchant’s website, but also for the traffic brought by affiliates they have recruited into the program (their sub-affiliates). In other words, it’s a way of earning commissions on both your own sales and on the sales of others who you have referred to the merchant.
Why opt for a two-tier system?
A two-tier affiliate program can be a great way to earn more money from your existing affiliates, while also attracting new affiliates to your program. Here’s how it works: under a two-tier system, you (the merchant) pay your affiliates a commission not only for the sales they generate, but also for the sales generated by their sub-affiliates .
How can I calculate the success of my two-tier affiliate program?
There are a few key metrics you can use to measure the success of your two-tier affiliate program. First, look at the number of signups or conversions generated by each tier. Second, look at the average order value or revenue generated by each tier. Finally, look at the click-through rate (CTR) or conversion rate (CVR) for each tier. By looking at these key metrics, you can get a good sense of how well your two-tier affiliate program is performing.
The benefits of using an affiliate marketing system
If you’re not familiar with two-tier affiliate programs, they simply refer to an affiliate program where affiliates can earn commission not only on their own sales, but also on the sales of other affiliates that they refer. In other words, it’s a way to earn commission on both ends.