2nd Tier Affilliate program - Is it worth it?

[sam kern]

Hello,

I am thinking of offering a second tier affiliate program with my next program. I think that 2nd tier
will make a product eveb more viarl

I have realized that it a bit more complicated to set it up if making a membership site.

for instance paypal and clickbank does not allow this.

So am thinking ...is it worth it?

i ll appreciate your words of wisdom

[Martin Brock]

Hard to say. It may not do anything for you, especially if you don't actively seek out people who are capable of sending you productive affiliates. Personally, I would put all my focus on my conversion rate and building my tier-1 affiliate base first and then consider introducing a 2nd tier program when I already established the viability of my offer. It's easier to persuade influential players when your product has gained a certain level of notoriety.

I'm not saying you shouldn't do it -- just that it is not likely to make a big difference initially and your energy would probably be spent better elsewhere.

[Mike Merz]

I tend to agree with Martin on this one for the most part .... but down the road, if you wish to allow a handful of your best affiliates the ability to bring on strong affiliates, one at a time ... through a tracking link so you know that the referrals are theirs ... I see no reason why you'd run into a problem tallying up their performance seperately and paying them manually through PP without categorizing it as a 2nd tier commission (if this is a problem, you could always cut a check).

The only reason I say this is that ... as a broker, I've done what I call a 'golden pass' time period where JV partners were given a short window of opportunity to bring on a limited number of close associates in return for a second tier per referred sale ... now, of course, if there is a limited time and number ... affiliates almost always bring on their most productive partners ... this has some times doubled partners in a very short period of time, and although additional money is paid out on the extra tier, the volume easily makes up for it ... not to mention acquiring new partners we may not have had access to (or even heard of).

I'm assuming you'll be using a CB affiliate management system?

Best,

Mike

[sam kern]

Thanks for your responses.

I believe that offering "2nd tier" system, can be a big boost. I am planning to do 2 launches soon. The first site is

http://www.spacemarketingsecrets.com

Am using paypal for payment processing with butterfly marketing script. I am bit confused on how to set up 2nd tier system. Mike Filsaime says that we should not use paypal for 2 nd tier as this will get our account banned. As far as i know we cant use clickbank for 2 nd tier.

So how can we get around this?

i see that in the premium section of JVnotify pro that many people must be using some kind of 2nd tier system.

Mike can you please advise how to set up a second tier with butterfly marketing without getting problem with paypal team.

[Mike Merz]

Hey, Sam.

In my situation ... where I am the only one being paid to refer affiliates and the sales they generate, I generally have access to the system ... whether it's a true 2 tier system, or an artificial one where my efforts ... and those of my referrals, are tracked manually (CB, PDC, and others that use PayPal).

I am NOT paid via PayPal for that chosen campaign's efforts if it's the latter ... I go out of my way to stay on the good side of PP ... if others chance it, that's their business ... but I don't recommend it.

I'd be very happy if they decided to change their stance on 2 tier programs, but until that day happens ... I'll abide by the rules.

Best,

Mike

[sam kern]

Hello Mike,

Thank you for your quick response.

In my situation ... where I am the only one being paid to refer affiliates and the sales they generate, I generally have access to the system ... whether it's a true 2 tier system, or an artificial one where my efforts ... and those of my referrals, are tracked manually (CB, PDC, and others that use PayPal).

I have butterflymarketing script installed on spacemarketingsecrets.com. Can you please help or guide me how to setup a "second tier" system for you?

[Richard Trice]

As an affiliate I tend to be more attracted to two tier programs, simply because I feel that I am less likely to have my commissions stolen by someone. So I feel that placing a two tier system would be better.

[Egidijus Andreika]

Hi,
I actually don't think that you really need the 2-tier affiliate system. Why? Because most of your JV partners or affiliates will promote your product to sell... and not to sign up additional people to promote. In this case, I think that you should put your efforts into somewhere else - building relationships with fellow members and other JV partners, refining the salespage to convert the best and etc. If you have a good product, sales letter and have really good JV partners that you can trust - it will be enough for you to succeed with your product launch... Even with 1-tier affiliate system.

Have a nice day,
Egidijus

[Harun Bahri]

I would love to hear/see some stats from marketers who have used a traditional 1 tier payout commission structure vs using a 2-tier structure.

Specifically, I'd like to know which one made the most money for both marketer and affiliate. Plus, which one is growing fastest?

Sometimes building the list is more important than profits.

Also, as far as paypal goes, you are MUCH better off NOT violating their rules regarding 2 tier payments. I personally know people who are now blacklisted by paypal through ignorance.

AND had to close down entire bank accounts and switch banks because of fear of PayPal going in and retroactively penalizing the marketer. To say it was ugly is an understatement and definitely not worth doing in my opinion.

Mike what do the JV people you work with (like Ewen Chia, Andrew Fox, Filsaime, etc..) prefer? And why?

Thanks Mike.
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