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Matt
Joined:
24 Aug 2003
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1
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Posted: Sun Aug 24, 2003 7:15 am
Post subject: Affiliate Program manager needs some advice
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Hello All,
I am starting a new affiliate program, and was about to start promoting it when I saw that Allan does not list multi-tier programs in his registry that have more than 2 levels of payment, due to bad reputation, for example.
Some background: The site I am starting is a personal-banking/finance lead generation site, with that being the main focus, and some promotion of the affiliate program (i.e. a link on each page called "Affiliate Program"; never predominant).
I had planned on structuring the payment to affiliates using a multi-tiered method with more than 2 tiers; the majority of the payout going to the direct generator of the lead. But after reading the Help!FAQ on the main site regarding multi-tiers, or programs with MLM style payment, I am rethinking this.
So should I change it to a 2-tier payment structure? What do you, as affiliates, think (good/bad) about multi-tiers for programs that focus on the visitor performing an action on the site, and not focusing on getting affiliates themselves?
I hope I've made sense here  ; I'll be looking forward to your replies.
Thanks!
Matt |
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Charlie
Joined:
22 Aug 2003
Posts:
3305
Location:
UK
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Posted: Sun Aug 24, 2003 10:58 am
Post subject:
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Hello Matt.
| Matt wrote: | | So should I change it to a 2-tier payment structure? What do you, as affiliates, think (good/bad) about multi-tiers for programs that focus on the visitor performing an action on the site, and not focusing on getting affiliates themselves? |
In principle, I do not care how many tiers a program has. The important thing, though, is that you completely reassure me that the program does indeed focus on the visitor performing an action on the site, and not focusing on getting affiliates themselves, as you put it. That is, rewards are for sales.
(This can be a bit of a grey area, for many people, and I can understand why Allan draws the line at two levels.)
Having said that, I'd have to say that I personally get nearly all my affiliate commissions from direct sales, not further down. (Off the top of my head, I can only think of two programs I promote with more than 2 tiers, though many contain 2 exactly.)
Like many people, I have a psychological block when it comes to MLM, and keep clear, logical or otherwise. The trouble is, I still like the concept of multi tier - or at least my greedy imagination does! 
I don't know quite how the "two-tier-respectability-cut-off" myth began, but I think it proves a nice compromise for many people...
Their conscience is settled (due to 2 tier programs being carefully positioned as totally distinct from MLM) Their greed is aroused by the (virtual myth of a) lucrative layer of sub affiliates working for them.
If I was starting a program myself, it would depend on what the sector was.
In an area such as marketing (!!), I would definitely go 2 tier, for the following reason...
There are a lot of potential, knowledgable affiliates who expect this - even if they gain little.
In the case of financial products, I think I'd go for just one tier.
By the way, although I think setting up a "pay per sale" model of some form is a good idea, do you really want an affiliate program open to the public?
Issues to consider...
How much time will you need to spend educating your visitors about affiliate programs, especially when ninety odd percent of them will never sell anything. Might it be better to run joint ventures (or an invitation only affiliate program) with potential super affiliates. Don't underestimate the time you will take "supporting" affiliates. Are your potential affiliates also potential customers? This is one of the reasons internet marketing "experts" are so keen to build up as many affiliates as possible, but doesn't work anywhere near as well in many other sectors.
Hope these thoughts give you food for thought,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx |
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AllanGardyne
Site Admin
Joined:
02 Jul 2003
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6302
Location:
by the beach, Australia
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Posted: Mon Aug 25, 2003 2:08 am
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Good points, Charlie.
Two-tier programs don't have the powerful impact they had a few years ago.
In 1998-99, when there were fewer affiliate programs, I was strongly in favor of two-tier programs. Nowadays, many affiliates join a program for a very short time and then are attracted to another new program, and another...
This greatly lessens the strength of two-tier programs. I think they're most suitable for merchants who are producing a stream of excellent products. Either way, I think the quality of the product and the ability of your site to sell it will be much more important to most affiliates than whether the commission is one tier or two.
If you go to the trouble of creating a two-tier program, you need to have a very clear idea of who would actually be promoting your program. If you have close relationships with say 10 or 20 people in key positions in your niche who would promote your program heavily, then a two-tier program might be the way to go. If not, it would probably be a waste of
time and effort.
Hope that helps.
_________________
Allan Gardyne
AssociatePrograms.com - You're here. Explore it! |
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