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 Multi-Tiered Affiliate Programs
Some affiliate programs will also employ a multi-tier affiliate tracking system that encourages existing affiliates to recruit new affiliates and to reward them for their effort based on performance and sales.
Affiliate software supports multi-tier affiliate tracking with up to three 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 which creates exponential growth.
Suppose the following two affiliates are setup with this affiliate commission structure:
| Affiliate |
Tier
1 Per Sale Commission |
Tier
2 Per Sale Commission |
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| John |
20% |
4% |
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| Jane |
20% |
4% |
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If Jane makes a sale worth $500 then she earns $100 (20%) in Tier 1 commissions, and John earns $20 (4%) in Tier 2 commissions. In total you paid out 24% in commissions. This example demonstrates a 2-tiered program.
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