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Why to consider a multi-level-affiliate program on your web site? Reasons to run multi-tier-affiliate-programs on your website.

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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.

11111

1


What if you could do this?

1
11
1111
11111111
1111111111111111
11111111111111111111111111111111
11111111111111111111111111111111111111111111111111111111

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

 Free Professional Affiliate E-Books

Affiliate Online Marketing Literature: Affiliate Selling: Building Revenue on the Web Affiliate Selling: Building Revenue on the Web  (Book)
By Wiley
   
Affiliate Online Marketing Literature: Rod Cook's How To Start Your Network Marketing Or Internet Multi-Affiliate Company Rod Cook's How To Start Your Network Marketing Or Internet Multi-Affiliate Company  (Book)
By Insights Pubishing
   
Affiliate Online Marketing Literature: The Super Affiliate Handbook: How I Made $436,797 in One Year Selling Other People's Stuff Online The Super Affiliate Handbook: How I Made $436,797 in One Year Selling Other People's Stuff Online  (Book)
By Webvista Inc.
   
Affiliate Online Marketing Literature: Successful Affiliate Marketing for Merchants Successful Affiliate Marketing for Merchants  (Book)
By Que
   
Affiliate Online Marketing Literature: The Complete Guide to Associate & Affiliate Programs on the Net: Turning Clicks Into Cash The Complete Guide to Associate & Affiliate Programs on the Net: Turning Clicks Into Cash  (Book)
By McGraw-Hill Trade
   
Affiliate Online Marketing Literature: Proven Tactics in Affiliate Marketing : 8 Case Studies Proven Tactics in Affiliate Marketing : 8 Case Studies  (Ebook)
By MarketingSherpa, Inc.
   
Affiliate Online Marketing Literature: Affiliate Cash Flow Marketing Affiliate Cash Flow Marketing  (Book)
By Imprint Books
   
Affiliate Online Marketing Literature: Multi-Tier Application Programming with PHP : Practical Guide for Architects and Programmers (The Practical Guides) Multi-Tier Application Programming with PHP : Practical Guide for Architects and Programmers (The Practical Guides)  (Book)
By Morgan Kaufmann
   
Affiliate Online Marketing Literature: How to Build a Multi-Level Money Machine How to Build a Multi-Level Money Machine  (Book)
By Prime Concepts Group Inc
   
Affiliate Online Marketing Literature: Understanding Multi-Level Commissions and Their Role in a Successful Company Understanding Multi-Level Commissions and Their Role in a Successful Company  (Book)
   
Affiliate Online Marketing Literature: Principles of Internet Marketing Principles of Internet Marketing  (Book)
By South-Western College Pub
   
Affiliate Online Marketing Literature: E-Marketing (4th Edition) E-Marketing (4th Edition)  (Book)
By Prentice Hall
   
Affiliate Online Marketing Literature: Revenue Magazine Revenue Magazine  (Magazine)
By Montgomery Research Inc

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 articles:

 Know to Grow!


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