Section 1: Affiliate Tiers
Section 2: Sub‐Affiliate Tracking
Section 3: Pros and Cons
When using the tier system you’re giving your affiliates the opportunity to not only promote your website(s) and products but also your affiliate program as well. Your affiliates can recruit other affiliates in to your affiliate program and as those new affiliates join they will go into the referring affiliates “tier”. As they generate commissions the original affiliate gets a commission as well. This is his bonus for referring this affiliate into your system.
For the following example we’ll assume a sale amount of $100.00 with a payout of 20% and a tier payout of 10%. We’ll also assume Affiliate A is the original affiliate and Affiliate B is an affiliate that Affiliate A recruited in to your system.
Standard Payout Example
‐ Affiliate A generates a commission. Affiliate A is paid $20.00 commission. That’s 20% of $100.00.
Tier Payout Example
‐ Affiliate B generates a commission. Affiliate B is paid a $20.00 commission. That’s 20% of $100.00.
‐ Affiliate A is paid a $2.00 commission. That’s 10% of $20.00 – The commission amount Affiliate B was given.
So when Affiliate A generates a commission Affiliate A is given the normal 20% and when any of Affiliate A’s tier affiliates generate commissions, Affiliate A is also given a tier commission.
Let’s say you have an affiliate that has 100 people in his own network he wants to utilize for his marketing efforts in your affiliate program. Rather than asking all 100 people to join your affiliate program through his link and having them put into his tier (explained above), you can enable to him the ability to hand out his own affiliate link to these 100 people with his own defined sub‐affiliate tracking number. So in this case you’ll have 1 affiliate in your affiliate program but with him using the sub‐affiliate tracking links you’re taking advantage of his entire marketing network. This is sometimes easier for the affiliate to just hand out affiliate links rather than ask (and hope) they will join your affiliate program.
Using this setup you’ll only be paying your one affiliate in your affiliate program and iDevAffiliate will report to this affiliate which of his sub‐affiliate tracking links generated the commission. The affiliate can then in turn pay his sub‐affiliate a commission using the reports provided by iDevAffiliate.
When using the tier system iDevAffiliate is generating the commissions for everyone. You have full control over how much everyone is paid and you can contact affiliates directly. These are essentially your affiliates.
When using the sub‐affiliate system your affiliates are responsible for paying their own affiliates within their own network of marketers. You’re only responsible for paying affiliates in your system which will reduce the amount of accounting involved in paying your affiliates each month. There are no accounts for the sub‐affiliates to create in your system which means the sub‐affiliates can start marketing immediately with the marketing links provided to them by your affiliate.