The potential of multi level affiliate programs is huge. It can
write the success story of a web business within weeks if implemented
correctly and with due care. A 3 tier affiliate program if implemented
correctly can harness the strength of internet especially in terms of
networking between people. Combine multi-tier affiliate programs and
their multi-level effects with viral marketing or any other fast
spreading promotional activity online and your are in for a huge treat!
Viral marketing, as a supporting promotional activity for any affiliate
program, describes any strategy that encourages individuals to pass on a
marketing message to others, creating the potential for exponential
growth in the message's exposure and influence. Like viruses, such
strategies take advantage of rapid multiplication to explode the message
to thousands, to millions.
By Puneet Mehrotra.
Most of the recent viruses spreading around the net have been programmed
to automatically email themselves to any of your friends (email
contacts) and to everyone you send email. They automatically spread
themselves and you may not even know about it!
Create a virus and let it spread. Sit back and reap the benefits. That’s
what really what viral marketing is all about. When I say create a virus
ofcourse I don’t mean a malignant code but a decent revenue or visitor
generation system.
Making Money the Viral Way
Consider this:
You launched yourdotcom yesterday. You haven’t really promoted your
website as of now so the stream of visitors is low. You have just 5
‘signups’ in a single day.
Explaining that graphically it means:
11111
Of these 5 people you may or may not be able to get more visitors or
customers to your site.
For every 1 visitor or customer to your website you get atleast 50 more.
Sounds good. It is possible. Read on...
A Multi Tier Affiliate program
MLMs maybe a much tarnished term. In fact the term is even banned in a
lot of online communities. A multi tier affiliate program I am talking
about isn’t really an MLM. For arguments sake it may at the most be
called a distant cousin of an MLM but definitely nothing more.
1 tier and 2 tier affiliate programs I wouldn’t really recommend. The
reason being the multiplication factor isn’t really high. A 3 tier
affiliate program if implemented correctly can harness the strength of
internet especially in terms of networking between people.
How it works?
Let’s say you are looking at a sales based 3 tier affiliate program
where the payouts are 15% in 1st tier
4% in 2nd tier
1% in 3rd tier.
John refers Tim. Tim further refers Harry. Harry refers Archie.
John comes to yourdotcom and purchases goods worth $100. He
automatically become becomes your affiliate.
He refers his friends Tim and Jim. Out of which only Tim comes and makes
a purchase worth $100. John gets $15 from this. This is 1st tier.
Tim refers Harry. Harry makes a purchase of $100. Now John gets $4 and
Tim gets $15.
Harry refers Archie who comes and makes a purchase of $100. Now John
gets $1, Tim gets $4 and Harry gets $15.
John >> Tim. John gets 15%
Tim >> Harry. John gets 4%, Tim gets 15%
Harry>> Archie. John gets 1%. Tim gets 4% and Harry gets 15%Referral
Rate.
Implementing a Multi tier affiliate program
The real success of a multi tier affiliate program lies in its
implementation. You need to have a few things in place
Objective of the program: Is it traffic or is it revenue?
Payout: Fix the payout to affiliates. Some sites give as much as 50%.
For tangible products even 20% is ok.
Technology: Technology has to be absolutely sound. Whether In-house
development or outsourcing are some issues. IP tracking, cookie handling
and other technical issues.
Who is implementing? An extremely important aspect. The right strategy
can make all the difference.
Object of promotion: You can’t really promote trash or fool people into
buying trash. This is a potent weapon and if it backfires it can be real
lethal.
Integrity: Internet is about information transfer. If something such as
this can spread the ‘good’ word so fast, it doesn’t take longer to
spread the ‘bad’ word either. Integrity of strategy and technology of
product and service will not only help a website grow it will also be a
tonic for the revenue generation of the business.
The potential of multi level affiliate programs is huge. It can write
the success story of a web business within weeks if implemented
correctly and with due care.
Puneet Mehrotra is the Chief Web
Strategist at Cyberzest.com and an Internet Columnist in
HindustanTimes.com, rated as one of the top 10 news sites in
the world by
Forbes. You can email him on
puneet.mehrotra@cyberzest.com
Also, don't forget to visit our Know to Grow! section where you can
learn many useful facts about affiliate marketing and where we try to
support your online marketing success with top-notch Internet marketing
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