Two tier affiliate marketing programs are difficult to find these days, and many companies have dropped their two tier programs. However, a two tier program is still the dream of every affiliate marketer. Here’s why it is important to pursue two tier affiliate marketing programs:
Lifetime Commissions – Once you sign a customer up with a two tier affiliate program, you get lifetime commissions from every single purchase the customer makes for the rest of his life. One tier programs require you to refer new customers every time to get paid. Then the customers belong to the company, and you no longer profit from them. Two tier affiliate programs allow you to build your own affiliate network and share profits from new customers as long as the customer is active.
Extra Incentive – As an affiliate marketer, you have to pay to keep your website running. You may also be paying to run ads in other places. Not to mention your personal time invested in driving customers to the company. When companies offer affiliates a lifetime commission from a two tier program, this gives an extra incentive for the affiliate to promote the company. The affiliate may even put money into promoting a two tier affiliate program, where a one tier program would be too risky to invest in.
Passive Income – Two tier affiliate programs are the only programs that have the full potential to be passive income. The more customers you sign up, the higher the probability of you getting a passive stream of income. Of course most of these customers will eventually leave overtime and eventually become inactive. But as long as you continue signing customers up, you have the potential to receive passive income for years.