Did you know that there are programs that you can join that will pay you commissions on the sales that your sub-affiliates have generated?

Best of all, these programs are free to join, simple to set up and can provide multiple earnings in the near future. You can market your affiliate program on your website, blog, forum, email newsletters and more.

2-tier affiliate programs

Welcome to the world of two-tier programs, other wise known as sub-affiliate commissions, 2-tier affiliate programs, residual commission programs and a host of other names.

A “two-tier” affiliate program is program that offers 2 types of commissions. The first allows you to earn income on the sales of the product or service, and the second, allows you to earn income on referring someone new to the program.

Some programs will pay a flat fee for the referral, such as $1 to $5 per valid lead, while many offer a percentage of the 2nd tier affiliate, or sub-affiliate, earnings.

Simple Example:

Let’s do a simple 2-tier commission example:

Here is the scenario: ‘Company ABC Inc.’ offers a 30% commission on the sale of any of their products AND also offer a 5% 2-tier affiliate commission.

During the course of the month you have generated 3 sales at $100.00 and you have 3 sub-affiliates underneath you that have generated 1, 2 and 8 sales respectively. Your income for the month they is:

Sales: 3 sales x $100.00 = $300.00
Your commission rate is 30%
Commission income: 3 x $30.00 for a total of $90.00
Your sub-affiliate #1 generates 1 sale @ $100.00, your commission is $5.00 ( 5% of $100.00)
Your sub-affiliate #2 makes 2 sales @ $100.00, where your commission is $10.00 on this affiliate publisher ( 5% of $200.00)
Your sub-affiliate #3 produces 8 sales @ $100.00, for your commission of $40.00 ( 5% of $800.00)

Your total commissions are $90.00, your total sub-affiliate income is $55.00
For a net income total of $145.00.

In actuality, you generated 3 sales but still earned $145.00. Should you have more sub-affiliates signed up underneath your program, you would stand to earn more … as long as they are performing.

Where to find 2-tier affiliate programs?

Within the AM411 Affiliate Marketing Directory are links to the most profitable high payout 2-tier affiliate programs we have found on the Internet. These free to join affiliate programs provide high commissions for direct sales, leads or clicks. Many popular and highly successful industries offer sub-affiliate commissioning; telecom, online and internet services, web hosting, credit card services and more.

About the Author

Anton Goldman is an affiliate publisher and contributor to AM411 affiliate marketing directory. Find great 2-tier affiliate programs that you can join today.