Sunday, April 10, 2022

Why the best two-level affiliate programs

Why the best two-level affiliate programs

When you join an affiliate program or start your own affiliate program, you must decide whether it will be a single-level or two-level affiliate program.

With a single level program, earn a commission for any sale you make and that's it. If you are running your own affiliate program, you pay your affiliates a commission for the sales they refer to and that's it.

However, with a two-level program, affiliates are allowed to recruit secondary affiliates and are paid a small percentage of the sales generated by these secondary affiliates. For example, affiliates can earn a 30% commission for selling product X himself; And when one of the sub-affiliates makes a sale, the affiliate can also get a 10% commission.

If you are starting your own affiliate program, should it be two-level or single-level? Some could avoid the apparent expense of a two-level program. But is it really that expensive? Many affiliate program managers make the wrong decision about it.

Let's see an example. You have a functioning affiliate program and an average affiliate joins your program. Mr.Average has a website that receives average traffic. It also has an electronic publication with thousands of subscribers published monthly. Mr. Average publishes its affiliate links on its website and promotes its product in its list of electronic publications.

Initially, it generates good sales. However, there comes a time when you saturate your market with your product and your sales begin to fall. He begins to lose interest in his program and his sales are still small. What happens if you set up a two-level program? Instead of trying to keep your commission payments small, you motivate your existing affiliates to recruit others for your program. This will exponentially increase your affiliate sales. Wouldn't it be worth paying the sending affiliate a percentage of the sales of their sub-affiliates? Now, when Mr. Coverage joins your affiliate program, this is what would happen. When you have saturated your market with your product, you would now promote your affiliate program to your customers and ezine subscribers. Many of Mr. Coverage's customers and subscribers decide to join the affiliate program. This in turn will motivate Mr. Coverage to continue promoting their products and recruiting affiliates.

What is the situation now?

1) Your income increases due to increased sales.
2) It has a much larger customer base to which it can sell backend products.
3) An increase in your income due to the lifetime loyalty of the clients referred by your affiliate.
4) An army of sub-affiliates that will sell their products and, in turn, will promote their affiliate program to their customers and subscribers.

The small extra in payments of affiliate sales commissions will be more than offset by the exponential increase in sales. This is why the two-level affiliate program is a guaranteed winner and should be the automatic option for potential affiliates and affiliate program managers.