As range and type of affiliate program extremely varies, so does the commission structure offered by such programs. On the basis of the payments made to affiliates as per the nature of online behaviors and participation of customers in a website, referring performance of affiliates and on other factors, varying commission structures are prevalent. It is not possible to cite and detail all the commission structures, some major types of those are included here. Affiliates must be familiar to these structure of commissions to get to take better decision in choosing an
affiliate program and how such commission models work.
On the basis of referrals made by affiliates, two types of commission structures are mostly in use. The first and the most simplest of all is the single level commission structure. This single level commission structure is also referred as 1 tier commission structure wherein affiliates get paid a predetermined percentage of commission as sign up fees for a single program. Most of the single tier or 1st tier commission structure pays more or less 50 percent to the affiliates. This structure lets affiliates to get a fair share of the sales chunks. So if you are a convincing seller, sign up for this plan. On the other hand, people you refer contribute nothing to increase this kind of fees, therefore, if you are not confident about your sales potential, avoid this structure.
Let us move to second tier
affiliate programs to find out what type of commission structure is available through this. You may opt for 2-tier or multi tier or multi level affiliate marketing program. In this program, commission structure gets divided through different layers of it. This programs may seem a bit complicated and therefore, needs careful studying of each tier of such affiliate program to know how it works. Chances of residual incomes too increases with this program. Internet marketers are who are poor in making sales can opt for this program to earn commissions from recruiting more affiliates. As the commission gets divided in diverse levels, so by recruiting too, you can earn commissions as well as get your share of commissions from the sales by your recruited affiliates.
Author: M Wali is an expert author of Rupiz Affiliates, a leading affiliate network that caters to global audience. Which is into
affiliate program, search engine optimization, online advertising, affiliate network.
