Affiliate Program : First tier payout vs Second tier payout
Posted by Fione Tan, head Internet Marketing Coach
Affiliate program allows you to recommend other people’s products and then make an income from their activity / response on that website (such as making a purchase or joining as member)
One of my internet marketing coaching students recently asked me this affiliate program question:-
In some affiliate programs, they’ve indicated a first tier payout and a second tier payout of different percentages. What are first tier payout and second tier payout?
My answer was:-
You are the affiliate and then recommend me & Harrace to visit website B (means MERCHANT).
When i go & visit website B, i also join the affiliate program so i become an AFFILIATE too.
- then you will earn 2nd tier payout (% of how much commission i am earning)
When Harrace goes & visit website B, he immediately buys something so he becomes a customer
- then you will earn 1st tier payout (commission on his amount of purchase)
Therefore, it’s best to join an affiliate program that can offer you at least a two-tier affiliate program so that you will earn more income.
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