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Affiliate marketing is when a party agrees to market a certain product or service that another party is selling. It makes a lot of money and is a very good business venture if done the right way. A two-tier affiliate program, on the other hand, is a kind of affiliate program model that makes it possible for an affiliate to earn money on whatever it is their doing PLUS also earning money on any webmasters they are able to redirect to the affiliate program that they have. Thus, it is like your usual affiliate marketing with some add-ons tossed at the side, and that is the commission one gets from webmasters that are referred to the program.
As for the issue of commission, it also follows the usual. However, since it has add-ons, the same also goes for the commission. Every person that goes to the referred program is also counted and is converted to money. How much each visit costs would depend on the affiliate program that you have. it could be a straight percentage or a percent or the percentage earned.
This venture sounds great, right, because it is like doubling up your income, making you earn twice than the usual, or even more! You earn with your sales, you earn for any people who get to sign up and you also earn when these people also start to make their own money. It becomes a networking scheme where people just try to sign up other people and nobody tries to make a sell. This is where the problem comes in. In the long run, more and more people will copy what you did and no money will come pouring in since nobody is making a sell because everybody is busy trying to make people sign up. And once they sign up they usually go on three paths. First, which is very uncommon, they convert into sales. Second, which is most likely to happen is they do nothing. Or third, which is difficult for your part, they just notice a new two-tier program and just totally forget about what you offered them.
So what are you to do? Choose the people whom you would do the two-tier program on. Choose those who have high positions in the online world and can get marketers with big opt-in lists. Now, the thing that you need to worry about doing the trick to these people is the competition is very high. You are not the only one marketing to them to join an affiliate program. Sometimes, they get tens of invitation for a single affiliate program alone. What you should do is forget about the program and just market the product alone. And, if they do get the product, just see the two-tier commission as an added spice to the business.


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