Knowledge Base

InstanteStore.com  
Login To Ticket System  

Browse
Knowledge Base
Search
Knowledge Base
FAQ

View Article

2nd Tier Affiliates

Question
1. What are 2nd Tier Affiliates?
2. How do they become 2nd Tier Affiliates?
3. How is 2nd Tier Affiliate Commission earned?

Answer
This is an example of how someone would become a 2nd tier affiliate:

Assumptions:
1. 1st tier commission: 15%
2. 2nd tier commission: 7.5%

"People" involved:
1. Mr A (he will become Affiliate A, a "1st tier affiliate")
2. Ms B (she will become Affiliate B, a "2nd tier affiliate of Mr A")
3. Mr X (example referral by Mr A)
4. Mr Y (example referral by Ms B)

Example scenario:
(Normal Affiliate Commission)
1. Mr A visits your store and decides to become an affiliate. He signs up as a customer, and then applies to become an affiliate (via his customer my account page).
2. You approve Mr A as an affiliate. Mr A is now Affiliate A, and earns 15% commission on all orders and customers that he refers DIRECTLY to your store.
3. Mr X goes to Mr A's site, and sees a link to your store. He clicks on this link, and is brought to your store. He then proceeds to purchase a product for $20 at your store. Since he was referred to your store by Mr A, Mr A makes 15% commission on this order ($3).

(2nd Tier Affiliate)
4. Ms B goes to Mr A's site, and sees a link to your store. She clicks on this link, and is brought to your store. She then signs up as a customer at your store. She also decides to become an affiliate of YOUR store, so she applies to become an affiliate (via her customer my account page).
5. You approve Ms B as an affiliate. She is now Affiliate B, and earns 15% commission on all orders and customers that she refers DIRECTLY to your store.

(2nd Tier Affiliate Commission)
6. Mr Y goes to Ms B's site, and sees a link to your store. He clicks on this link, and is brought to your store. He then proceeds to purchase a product for $100 at your store. Since he was referred to your store by Ms B, Ms B makes 15% commission on this order ($15). This is still "normal", 1st tier affiliate commission. How things are different is that since Mr A referred Ms B to your store, and Ms B in turn referred Mr Y to your store, Mr A also collects 2nd tier commissions for all orders referred to your store by his affiliate Ms B. So in this case, Mr A collects 7.5% 2nd tier commission on Mr Y's order ($7.50).

To summarize:
1. Both Mr A and Ms B make 1st tier commissions from customers who come directly from their sites to yours.
2. Additionally, Mr A makes 2nd tier commissions off any customers that Ms B refers directly from her site to yours.

There is nothing special or different about the application process for 2nd tier affiliates. A 2nd tier affiliate is him or herself an affiliate (1st tier) of your store, but he/she MAY also be a 2nd tier affiliate of another affiliate, if he/she was originally referred by an affiliate to your store. This system basically encourages existing affiliates to attract/send other potential affiliates to your store so that they can earn commissions from people that their affiliates refer to you as well. This is a means for you to attract more affiliates in general to publicize your store.

Category : Affiliates
Author : terryo (Terry Ong)
Date : 02-11-2007 08:59AM

All rights reserved. Copyright InstanteStore.com 2019.