Multi Tier Programs
You may be wondering what Multi-Tier programs are. Well, they are
basically a legitimate version of a pyramid scheme. These programs don't
follow the scam dynamic and all of the people will still receive their
rightful reward though.
The easiest way to conceptualize it is to think of a big, branching
ladder system. Affiliate marketing usually just focuses on one specific
level. You bring a customer onto the website and they buy the product or
perform the desired action. You're paid and then it's all over. This
isn't how multi tier programs work.
They offer additional opportunities as your referred customers refer
other people. You can hopefully form a big downline and rake in a good
bit of cash without any additional labor. A good push in the beginning
could give you a full network who will happily do all of the hard work
for you.
It may sound too good to be true, but it really isn't. I'll give you
an example. Several web hosts offer a program where you are able to
benefit off of referred members. You start out just doing a standard
affiliate marketing method. You'll have to tweak your methods for a
different audience than usual though. You will be aiming for people who
are motivated enough to start referring people on their own. This means
using something to win over the people who are somewhat knowledgeable
when it comes to the subject of Internet business.
Once you have them signed up, it's easy. Just sit back and pay
attention to the account. If they refer people to the website, you'll
get an additional bonus or cut of the profits. It usually scales down in
some form. Say you get 10% of their purchase for their web hosting. If
they refer someone, you may get 5% of that person's purchase. It then
goes on from there, depending on the number of tiers available. The
important note is that the members in the downline don't suffer for
their position. They receive the same benefits you do. In fact, you may
want to explain this for some programs. Otherwise a confused member may
snub your link and sign up through the main page.
Basically, it goes like this. You sign up John. John then refers
Alice and Janet to the program. Alice and Janet get all their friends to
join. If you do it right, you can get a lot of people in the chain and
all their little commissions really add up in the end. Online
advertising companies also use multi tier to convince people to get in
early. The first to sign up will be able to convince John and all his
business friends that this new program is a good choice. They then
spread the word and the network builds. It is obviously a bit more
complicated than this in practice, but you should get the basic idea.
I hope that you understand what multi tier programs are. They just
take affiliate marketing past the first sale. You're referring people
with the hope that they'll refer all their friends. The key factor is
actually picking a good program early. If you get in too late, the party
will be over and the recruiting spree will leave you without any
uncommitted customers. |
