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December 17th, 2007

Why Second Tier Affiliate Commissions Are So Important

It is very advisable to always opt for affiliate programs that pay second tier affiliate commissions because in many cases this could easily make the difference between success and failure.

Simply put second tier commissions are commissions on the earnings of persons whom you have referred to the program. But why are these second tier earnings so important?

Actually there are a number of reasons, but the key one has to be the fact that it enables an affiliate to lay claim to valuable residual income which can easily continue even beyond their lifetime. Residual income is like earnings from an oil well. The well is dug once and the equipment set up, and then it will continue producing for years all the time putting cash into the pockets of the owner who did al the work once for their lifetime income. Another example is a person who puts up a block of apartments. The exercise of construction is carried out once but once the building is ready, will continue to yield profits and revenue from a rental income for years and chances are that the property could get passed on down several generations.

Second tier affiliate commissions work in more or less the same way. Usually you will require a different affiliate link from the usual product affiliate link. The really interesting thing is that in many programs affiliates find it a lot easier to recruit second tier affiliates into the program that it is to sell the affiliate product. All you need to do is to explain the benefits of the program and the methods that you have used to earn what you have earned so far. Even if you are yet to earn a penny you can get this information from the programs leading affiliates which shouldn’t be too difficult since you are already an affiliate.

In fact if you can produce a number of how-to articles and possibly a brief e-Book, you will be able to recruit sub-affiliates very rapidly and this will quickly place you in line to receive second tier affiliate commissions sooner than you thought it possible.

Not all affiliate programs pay second tier commissions; in fact many do not even pay for referrals. This is something you will need to carefully examine in the affiliate program that you are joining, simply because this can make a very big difference in the kind of revenue you will earn.

 

 
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