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Why 2-Tier Programs Do Not Deliver What They
Are Supposed To?
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Ken Evoy's SiteSell
SiteSell
Review
4th of December' 2002
Have you ever joined an affiliate program that offers 2 levels
of commission income, a.k.a. 2-tier affiliate programs? I'm
quite sure that your expectation of explosive monthly income
without doing much of work didn't materialize.
Most of the programs attract webmasters by providing an online
calculator that will try to estimate your income based on the
direct sales as well as indirect sales of sub-affiliates you
bring into the program. The assumption is that you can get away
with a bare level of sales in the given period, whereas your
sub-affiliates will be diligent enough to achieve a huge number
for their sales figure, providing you with free 2nd level commission
income.
Why this theory fails to materialize? Because all those sub-affiliates
you bring are
only interested in building a team of their own sub-affiliates
that can do the magic of generating sales for the merchant.
SiteSell
is different. It's still a 2-tier affiliate program but the
attitude is focused on business practicality. They understand
the significance of "new customers" for a
company's survival & continued profitability and they
have devised their affiliate commission structure to reflect
this stance.
SiteSell offers a variety of e-books on the subject of internet
business & marketing. They also market Site
Build It software that helps today's webmasters build profitable
and traffic-oriented websites from scratch.
To reach the masses, they run a well rewarding affiliate program
called 5
Pillar Club. What's unique about this club is the TVI approach
to calculating affiliate commissions. Affiliates are required
to do atleast one sale themselves, if they desire to collect
their 2nd level commission
income. The more direct sales that an affiliate does, the more
percentage of selling price (hence commission) does he get for
the sales of his sub-affiliates. This motivates webmasters to
work on increasing their conversion ratio and doesn't let them
completely forget about the program after placing initial banners
on their web pages. Result, company's profitability grows as
affiliate members keep on bringing new customers. I haven't
seen any other affiliate program introducing such restriction,
but overall this is good for the whole affiliate community.
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