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Tip 2: Affiliate schemes with multiple tier payment plans

How to make serious money

Multiple tier affiliate schemes give you the power to earn a commission not only on your own direct sales, but also from the sales of other affiliates (indirect sales).

A win win situation

With multiple tier payment plans, it is in your best interests to help other affiliates earn more. The more money they make, the more you make. This is very different from normal affiliations where you are competing with other affiliates for each sale. As more and more people learn about affiliations, this problem will become worse.

How can a merchant pay multiple tiers?

Every product has a margin the merchant knows can be paid out as commission e.g. 10%

With multiple tier plans, the merchant simply spreads the commission to several people rather than paying to just one. Generally the affiliate who makes the sale will still get the most commission, but all the other people who have been indirectly responsible for the sale will also receive payment.

For example, suppose a plan pays to 8 tiers - the affiliate who makes the sale could get 3%, and the other 7 tiers could get 1% each. The merchant still only pays out 10% commission in total, but pays it to 8 people rather than 1 person.

So for example, say as an affiliate you find 2 other affiliates who do the same as you. When you get to the 8th tier, there are 254 other affiliates where you earn 1% commission on any sales i.e. if they all sold as much as you, you would make 25 times the commission you would from your own sales alone.

Note: With multiple tier affiliate plans, you need to have patience as your income will take time to build. Initially you may think "I could earn more myself" and in the short term, this would be true, but on the medium and long term, you are far better to take a small percentage from the higher volume of sales.

The key difference between making good money and massive money

Would you prefer 100% of your own efforts alone or 100% of your own efforts plus 5% of 100 other people's efforts (think about a company with staff - would you prefer to be an MD or an employee?).

Typically, you can expect exponential growth of income in a multiple tier affiliate scheme and the main reason for failure with mutiple tier commission plans is webmasters not giving enough time for the plan to work. You normally need to be happy to wait 6-12 months for the bigger returns.

Recommended reading

Best seller - Richard Kiyosaki, Rich Dad Poor Dad, What the rich teach their kids about money that the poor and middle class do not.