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About Affiliate Marketing Multi-Tier Affiliate Programs
About Affiliate Marketing Multi-Tier Affiliate Programs | Multi-Tier Affiliate Programs |
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Some advertisers offer multi-tier programs that distribute commission into a hierarchical referral network of sign-ups and sub-partners. In practical terms, publisher "A" signs up to the program with an advertiser and gets rewarded for the agreed activity conducted by a referred visitor. If publisher "A" attracts publishers "B" and "C" to sign up for the same program using his sign-up code, all future activities performed by publishers "B" and "C" will result in additional commission (at a lower rate) for publisher "A". This system rewards a chain of hierarchical publishers who may or may not know of each others' existence, yet generate income for the higher level sign-up. This sort of structure has been implemented successfully by a company called Quixtar, a division of Alticor, the parent company of Amway.[citation needed] Quixtar has implemented a network marketing structure to implement its marketing program for major corporations such as Barnes & Noble, Office Depot, Sony Music, and hundreds more. Two-tier programs exist in the minority of affiliate programs; most are simply one-tier. Referral programs beyond two-tier involve multi-level marketing (MLM) or network marketing. Even though Quixtar's compensation plan involves network marketing that may not be considered to be affiliate marketing, the leading partners in the company are considered to be and call themselves affiliates. Therefore, one may argue that Quixtar is the affiliate marketer for its partner corporation. Source: Wikipedia - Affiliate Marketing |
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