Top Articles

Stay In Touch


Affiliate Marketing Forum

FAQ FAQ Search Search Memberlist Memberlist Usergroups Usergroups
Register Register Profile Profile Log in to check your private messages Private Messages Log in Log in

Multi-tier affiliate programs
Goto page 1, 2  Next
Affiliate Marketing Forum Index » General Affiliate Discussion
Post new topic   Reply to topic
View previous topic :: View next topic  

What best describes your attitude to multi-tier affiliate programs?
Brilliant - the more tiers, the better.
15%
 15%  [ 2 ]
Fine as long as the merchant emphasises commissions are related to sales - not MLM.
61%
 61%  [ 8 ]
I prefer not to promote them, because people may confuse them with MLM.
7%
 7%  [ 1 ]
They are the same as MLM
15%
 15%  [ 2 ]
Total Votes : 13

Author Message
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Sat Oct 11, 2003 8:20 pm
      Post subject: Multi-tier affiliate programs

Reply with quote

Please vote in the poll above (you have to be registered) and feel free to post opinions in the thread below.

Thanks,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
speedguide



Joined:
19 Sep 2003

Posts:
467

Location:
Palm Coast, Florida

Post Posted: Sat Oct 11, 2003 8:59 pm
      Post subject:

Reply with quote

The multi-tier programs do not sway me one way or the other. Years ago I use to purchase an AmWay product for my business needs. After about 2 years I finally had to ask the sales lady.... How come you've never given me the AmWay pitch.

She said simple enough.... "If you want to hear it fine, but I don't want to waste my time recruiting people that never sell anything. I only make money when products sell". She decided to build a route and make sales. Anything else is or was a bonus.

I've never forgotten that lesson. Focus on your selling and anything extra is a plus. It does me no good to get lifetime commissions of ZERO... plus it kills a lot of time.

As I read the post on this and other forums... Most of all the problems could be solved with two easy words - "MORE SALES".

Our job is to figure out how to get more sales.

Gary
www.internet-speed-guide.com
_________________
Gary
- ONE is to small of a number to be a success!
Learn HOW TO create targeted, focused Content for your website!--> http://webcontenttips.com - Join Our Weekly Newsletter
Back to top View user's profile Send private message Visit poster's website
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Mon Oct 13, 2003 8:21 pm
      Post subject:

Reply with quote

Thanks for your post, Gary.

I'd rather not add my views until a few more people have commented... Wink

Cheers,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Fri Oct 17, 2003 7:46 pm
      Post subject:

Reply with quote

Charlie wrote:
I'd rather not add my views until a few more people have commented... Wink

Oh dear... it's just you and me again, Gary! Sad Wink

Quote:
I've never forgotten that lesson. Focus on your selling and anything extra is a plus.

Even Allan G takes that approach. If he can't make money on the second tier, what chance do the rest of us stand?

I was really hoping we would dive into those murky waters where affiliate programs meet MLM, but it looks like everyone's decided to stay on dry land. I'm tempted to take the lead, and say "come on in - the water's fine", but I don't like swimming alone in shark infested waters.

Anyone brave enough?

All the best,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
AllanGardyne
Site Admin


Joined:
02 Jul 2003

Posts:
6302

Location:
by the beach, Australia

Post Posted: Fri Oct 24, 2003 8:49 am
      Post subject:

Reply with quote

I wonder if the way you've phrased the questions is confusing some people? I'm confused anyway, because to me there's no such thing as a "multi-tier affiliate program".

There are one-tier and two-tier affiliate programs, and anything with more tiers is MLM. As I understand it, that's the generally accepted definition throughout the affiliate industry - certainly among most of the affiliate directories.

Sometimes people launching multi-tier programs call them affiliate programs. That's probably nearly always done because they know that affiliate programs have a better reputation than MLM programs.

In "multi-tier" I assume you're including two-tier programs?

Lawyers may argue that two-tier programs are the same as MLM programs, but to me there's a world of difference.

Anyway, "multi" means "many", and two is definitely not many, whatever the lawyers say.

For background on that, see:
"Are all two-tier programs MLM?"
http://AssociatePrograms.com/search/newsletter048.shtml

My vote: Re-word the poll and start again.
_________________
Allan Gardyne
AssociatePrograms.com - You're here. Explore it!
Back to top View user's profile Send private message Visit poster's website
speedguide



Joined:
19 Sep 2003

Posts:
467

Location:
Palm Coast, Florida

Post Posted: Fri Oct 24, 2003 9:33 am
      Post subject:

Reply with quote

Charlie,

I went back and reread the question since Allan made it pop up to the top of my list again... and I wonder if he doesn't have a point.

With so many "un-performing" not under perfroming "promoters" (used loosely) do they even know what they've signed up for or what the program is?

Maybe the question needs to be rephrased or a new one started... How many programs that you are signed up for are multi-tiered?

I wonder if the question could be "too advanced"

--- By the way... your nephew was coming over yesterday, you seem to always look forward to him dropping by... we can learn so much from kids. They are so free, so open. Did you 2 enjoy the day?

I once read that is we want to see what the future will be like in 15 years... view it through the life of 15 year old.
_________________
Gary
- ONE is to small of a number to be a success!
Learn HOW TO create targeted, focused Content for your website!--> http://webcontenttips.com - Join Our Weekly Newsletter
Back to top View user's profile Send private message Visit poster's website
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Fri Oct 24, 2003 11:45 am
      Post subject:

Reply with quote

Hello again.

AllanGardyne wrote:
I wonder if the way you've phrased the questions is confusing some people? I'm confused anyway, because to me there's no such thing as a "multi-tier affiliate program".

Goodness me, if you're confused, I am in trouble! Laughing

AllanGardyne wrote:
There are one-tier and two-tier affiliate programs, and anything with more tiers is MLM. As I understand it, that's the generally accepted definition throughout the affiliate industry - certainly among most of the affiliate directories.

I fail to see the problem (in theory) of more tiers, as long as the commissions are linked solely with sales. However, in practice, I can understand why the directories stick to a maximum two tiers.

AllanGardyne wrote:
Sometimes people launching multi-tier programs call them affiliate programs. That's probably nearly always done because they know that affiliate programs have a better reputation than MLM programs.

Maybe the flip side is that someone came up with the term "affiliate program" or "associate program" to differentiate themselves from MLM (and it's negative connotations), in the first place.

AllanGardyne wrote:
In "multi-tier" I assume you're including two-tier programs?

No, I was actually meaning more than two.

The idea of the poll was to try and expose people's attitudes to MLM. I don't like MLM, but don't have a good reason why not, as long as things are done fairly and commissions are on sales rather than "recruiting team members". This is the definition I was trying to get people to compare with a "multi tier affiliate program".

Isn't the whole question of the affiliate program one of rebranding a specific form of MLM, and going to great lengths to differentiate the "new" niche for marketing purposes?

AllanGardyne wrote:
My vote: Re-word the poll and start again.

Blimey, thank goodness I appreciate "directness". Wink

If your input doesn't jump start the thread, I may well do that. Smile

All the best,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Fri Oct 24, 2003 1:08 pm
      Post subject:

Reply with quote

Hello Gary.

Sorry our posts crossed over...

speedguide wrote:
How many programs that you are signed up for are multi-tiered?

Two. I don't promote either of them these days - because of the subject, not the number of tiers, by the way.

speedguide wrote:
I wonder if the question could be "too advanced"

I'm not sure about advanced, but maybe "specialist" - in the sense not many people are interested in the subject, perhaps. Wink

speedguide wrote:
--- By the way... your nephew was coming over yesterday, you seem to always look forward to him dropping by... we can learn so much from kids. They are so free, so open. Did you 2 enjoy the day?

Yes, thanks, I certainly did. He's three-and-a-half and "challenging". He likes playing around, but he's stubborn as a mule, at times. We get on very well together. Laughing

speedguide wrote:
I once read that is we want to see what the future will be like in 15 years... view it through the life of 15 year old.

All I can say is, I daren't ask what the world's going to be like in 3 or 4 years time.

And I thought I had an active imagination. Laughing

All the best,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
ascreen



Joined:
29 Oct 2003

Posts:
7

Location:
Indiana

Post Posted: Wed Oct 29, 2003 6:03 pm
      Post subject:

Reply with quote

Charlie,

If you're still looking for people's thoughts on MLM, I'm happy to share my $.02.

An affiliate program is a program where income is based primarily on commissions, regardless of the number of tiers. An MLM (as most people think of them today) is not based on commissions, but rather on membership fees. The labels are a little misleading. A program that pays sales-based commissions on 5 levels can be great, and a program that pays nothing but referral bonuses can be bad even if it is only 1 or 2 levels.

It really isn't so much about the number of levels in the program, it's about whether the company produces a good/service that someone would buy even if they weren't a member in the program.

That being said...

The number of tiers in a program is a spectrum. If the program has relatively few tiers, then you're counting on your own actions to generate income for yourself. If the program has many tiers, you're counting on other people's actions to generate income for yourself. It's not difficult to understand, then, why so few people actually make money in programs that have many tiers.

That's my $.02.

Clay
_________________
Review and rate affiliate programs at http://www.affiliatescreen.com
Back to top View user's profile Send private message Visit poster's website
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Wed Oct 29, 2003 8:05 pm
      Post subject:

Reply with quote

Hello Clay.

ascreen wrote:
If you're still looking for people's thoughts on MLM, I'm happy to share my $.02.

Thanks. At last we're heading where I hoped we would...

ascreen wrote:
An affiliate program is a program where income is based primarily on commissions, regardless of the number of tiers. An MLM (as most people think of them today) is not based on commissions, but rather on membership fees.

This is exactly the definition I have always used - and before this thread, I thought many other people did, too. I've got to be honest, I was very surprised no one mentioned this till now.

My original question was phrased to try and extract this very comparison.

I thought this was the main argument used by affiliate program advocates to differentiate themselves from MLM, but this thread was missing it altogether.

I asked the question, and was reluctant to put words into people's mouths. Now Clay has raised this, has anyone else any more views?

All the best,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
edgar
Guest





Post Posted: Thu Oct 30, 2003 3:51 am
      Post subject: can you suggest a good 2 tier program?

Reply with quote

Hi

for me a two tier should be the maximum for an affiliate program.
we know whats the refutation about MLM nowadays..ist not good.
anything that is more than 2 level is already an MLM.

well..can you suggest a good 2 tier program?
i will be willing to join it..lol :

Regards
Ed
Back to top
administrator
Site Admin


Joined:
02 Jul 2003

Posts:
1472

Location:
Maryborough Queensland Australia

Post Posted: Thu Oct 30, 2003 8:32 am
      Post subject:

Reply with quote

OK, the message is that this message board is NOT for the discussion of MLM's. I've given you some slack to clear the air on a few points and now I ask you to respect Allan's wishes.

I have now locked this topic.

Wally Morgan - Moderator
Back to top View user's profile Send private message Send e-mail Visit poster's website
administrator
Site Admin


Joined:
02 Jul 2003

Posts:
1472

Location:
Maryborough Queensland Australia

Post Posted: Fri Oct 31, 2003 8:22 pm
      Post subject:

Reply with quote

Owing to popular demand, this topic is now unlocked with the reminder: "Please keep this discussion on the subject of multi-tier affiliate programs and avoid unnecessary reference to MLMs, or I will have to re-lock the thread". The quote is recommended by one of you as a condition for re-opening the thread!!! I've listened!

A bit of controversy is great and I must agree most comments really have reflected this request.

Again, thanks for your positive support for one another and this message board.

Wally Morgan - Moderator
Back to top View user's profile Send private message Send e-mail Visit poster's website
Timothy Warnock



Joined:
08 Aug 2003

Posts:
205

Location:
Assisi, Italy

Post Posted: Sat Nov 01, 2003 8:25 am
      Post subject:

Reply with quote

Hello,

Wally, I'm impressed! It's good to know that you are carefully watching over this forum - and will intervene when necessary - and it is also good to know that you carefully listen. I have seen very few moderators reverse a direction - your willingness to at least listen (even if you don't reverse a direction) will only create deeper loyalty from all of us that participate regularly here towards your decisions. Again, another testimonial to the helpfulness of this forum. Thanks.

Ok, now I am obliged to post after what I said in another thread! Let's see if I can walk the tightrope here...

Just for the sake of clarity and definition (Wally, I want to talk a little bit about MLM as a means of helping others to understand its pitfalls and subtle techniques that I find dangerous), it seems to me that MLM (also known in many cases as Pyramid schemes) is based almost entirely on creating a "downline" of paying participants - it starts getting foggy and grey when one doesn't have to pay to participate, but there are many levels (3 or more).

I think one of the aspects of most MLM programs that I find most disturbing is the almost cultish "family" and "team spirit" brainwashing techniques used. The phenomena is almost always the same - and it sucks people in by creating a sense of belonging combined with promises of wealth, "if you just get more individuals to sign up to join our team".

The reality of the matter is that these folks couldn't care less about you. If you find yourself in difficulty, I'd like to see how far their "family" attitude extends to help you out! Another reality is that the vast majority of participants lose to help the few at the top to win. Your efforts tend to reward others, not yourself.

Whereas a healthy affiliate program (one or two tiers) is focused on recognizing the reseller's efforts directly. There isn't all the useless "join our great family" crap, just helpful tips and techniques on how to sell better.

A second tier helps very few individuals, but can be very interesting for new product releases, especially if an individual has good contacts (knows big list owners of the target market). I am currently trying to convince a merchant right now to give me a second tier, because I have such contacts, and the product in question is new, unique, and of good quality - a second tier is especially good for helping to establish JVs, it can be a powerful motivator.

Beyond 2 tiers, the direct efforts of the affiliate that actually makes the sale starts to get too diluted, and starts to fatten the wallets of too many in the "upline". I think 2 tiers are widely accepted because it keeps the payment in one way or another directly related to actions involved.

As has been mentioned, to make money as an affiliate, one should focus on direct sales, any second tier income should be seen as a perk.

I hope this helps.

Tim
_________________
Timothy Warnock

Copywriter
Back to top View user's profile Send private message
Charlie



Joined:
22 Aug 2003

Posts:
3305

Location:
UK

Post Posted: Sat Nov 01, 2003 4:03 pm
      Post subject:

Reply with quote

Hello again.

Thanks for unlocking, Wally, and for posting, Tim! Smile

Tim wrote:
Whereas a healthy affiliate program (one or two tiers) is focused on recognizing the reseller's efforts directly. There isn't all the useless "join our great family" crap, just helpful tips and techniques on how to sell better.


Quote:
A second tier helps very few individuals, but can be very interesting for new product releases, especially if an individual has good contacts (knows big list owners of the target market). I am currently trying to convince a merchant right now to give me a second tier, because I have such contacts, and the product in question is new, unique, and of good quality - a second tier is especially good for helping to establish JVs, it can be a powerful motivator.

I think a private 2 tier program can be an excellent way of automating a few powerful JVs, without having to take on the large support load that goes with building a vast, but predominantly underperforming affiliate team via a public 2 tier program.

Quote:
Beyond 2 tiers, the direct efforts of the affiliate that actually makes the sale starts to get too diluted, and starts to fatten the wallets of too many in the "upline". I think 2 tiers are widely accepted because it keeps the payment in one way or another directly related to actions involved.

I think it's more of a psychological effect. The need to make it clear that it is still an affiliate program, but at the same time appeal to people's intangible greed (for sales from sub affiliates).

Quote:
As has been mentioned, to make money as an affiliate, one should focus on direct sales, any second tier income should be seen as a perk.

Remember, even Allan G claims to make the majority of his commissions from the first tier (direct) sales with his favourite SiteSell program.

Cheers,
Charlie.

P.S. Please vote in the poll if you haven't yet. It's anonymous.
_________________
"Before I speak, I have something important to say."
- Groucho Marx
Back to top View user's profile Send private message
View previous topic :: View next topic  
Display posts from previous:   
Post new topic   Reply to topic
Affiliate Marketing Forum Index » General Affiliate Discussion
Page 1 of 2 All times are GMT
Goto page 1, 2  Next

 

Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum




Newsletter Sign-up

Sign-up Now!

How to make $1000 a month from scratch

Sign-up for our newsletter and receive our 77 page eBook "How to make $1000 a month from scratch".

Best of all it's FREE!

Your Host

Allan Gardyne

Learn from an affiliate veteran.

Your host, Allan Gardyne, has been earning a good living from affiliate programs since 1998.

Want a BETTER article writer? We will write good articles just for you.

Content Kingdom