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One Tier or Two Tier?

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One Tier or Two Tier?

Postby Dave Navarro » Thu Jan 12, 2006 11:35 pm

Question for all.

I'm creating a $37 product and trying to decide how I'm going to do the affiliate structure.

Should I go one tier with a $25 payout?
Or 2-tier with a $15/$10 or $20/$5 payout?

On one hand I'd like to go 2 tier for more incentive to spread the word, but I don't know if I'm going to get much bite at $15/$10.

What are your thoughts? I'm planning on launching within 2 weeks.

Thanks,
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Postby Lynn Terry » Fri Jan 13, 2006 12:03 am

If you go with a 2nd tier, I would use $20/$5 for the bulk of your affiliates.

Also you might consider going with a single tier publicly, and setting up a second tier for JV partners only.
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Postby Dave Navarro » Fri Jan 13, 2006 12:17 am

Hmm, that second suggestion sounds good ... I think I'll start with that!

Thanks,

Dave

PS , signed up with PDC via your link ...
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Postby Lynn Terry » Fri Jan 13, 2006 10:01 am

Thank you ;)

But... PayDotCom is single tier only.
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Postby Dave Navarro » Fri Jan 13, 2006 11:59 am

:-) Right, one tier ...

I think I'll go one tier now, as it's easier to manage - I'm not necessarily looking to get a zillion affiliates, but a few core players. One tier will allow me to give a bigger payout.

Plus, it gets me up an going quickest :-) I'd rather get something going now and improve it along the way ...

Thanks for all your good advice -
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Postby Jim Guinn » Fri Jan 13, 2006 12:59 pm

You can have multiple tiers in PDC. I just double-checked.

Jim
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Postby Dave Navarro » Fri Jan 13, 2006 1:10 pm

Hey, I was just coming back to report the same thing!
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Postby Lynn Terry » Fri Jan 13, 2006 2:08 pm

I am pretty sure you cannot have multi tier systems with PayPal as your payment processor - and I remember PDC announcing '2 tier capability' and then retracting that statement after consulting with PayPal on it.

So has this changed (very recently)?

Or does PDC only allow multi tier if you process those payments through Stormpay?
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Postby Lynn Terry » Fri Jan 13, 2006 2:09 pm

p.s. With either setup, you could always set up a different affiliate product for JV partners that offered a higher payout than normal affiliates on the same product. You would only want to make that available to JV partners or your super affiliates, of course - but its a good workaround.
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Postby Jim Guinn » Fri Jan 13, 2006 3:11 pm

Either way, Lynn, when you use PDC, the money goes right into your PayPal or StormPay accounts. You pay the affiliates at the end of the month based on the report from PDC. They keep track of the affiliate payments for you......so you can have multiple tiers on PDC.

Jim
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Postby john925 » Fri Feb 10, 2006 10:56 pm

I prefer 2 tier affiliate programs. I still join 1 tier programs, but prefer 2 tiers as I also do alot of work when it comes to getting new affiliate signups.
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Dave , do the right thing!

Postby Troy » Sun Apr 16, 2006 3:36 am

Two tier.
I was making alot of coin until the Jagger Shakedown, which knocked alot of my sites outta rank, and depended on the sub affiliates that are tiered under me to pay my rent, which they did, because it dawned on me earlier about the power of tiering, so I have always made sure that I advertise to get people tiered under me, with a good stable company to affiliate with.
Things are back to normal now. I just thank God for my sub affiliates, so I really believe that two tiered is the way to go if you are going to run an affiliate program, as it really helps those (the affiliates) that have put the time and effort into building your affiliate pool, and most of all, making sales for you.

Dave, as a full time affiliate marketer, I believe that having a two tiered program is a great incentive for other professional affiliates to consider when joining an affiliate progam.
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Postby Dave Navarro » Sun Apr 16, 2006 9:14 am

Troy -

Thanks for your insight. What affiliate marketing manager program do you use?
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Postby NetDebut » Mon Apr 17, 2006 6:28 am

From an affiliate's point of view, it's nice to have a two-tier, but to be honest, I'd rather not deal with it and stick with just a one-tier because too many payment processors like PayPal don't allow two-tier businesses. They consider that MLM and will shut you down.

2co is actually a little more laid back, but they also don't allow MLM, so you might want to check with them if they consider a two-tier as an MLM.

To me, a two-tier is not MLM, but if that's what they say, we can't really argue.
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Postby smithkarl » Mon Apr 17, 2006 7:41 am

Hi,

It is always better to make a two tier program. From the affiliate point of view you will get more affilaites cause they prefer to get paid also from their subs...
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