2 Tier Programs are Few and Far Between.
With a 2-tier program, you as an affiliate marketer can recruit sub-affiliates. These sub-affiliates can refer customers to the seller, just like you, and make commissions.
Whenever that happens, the sub-affiliate makes the regular commission, and then you make an additional, smaller commission of that same referral.
Combine this with lifetime commissions, and you can see that if you recruited a single sub-affiliate, and then stopped all efforts... and this single sub-affiliate referred 10 customers, you would make commissions off those 10 customers for as long as they continued purchasing.
Let's see how this plays out in the Lemonade Stand Wars.
Timmy Strikes Back with 2-tier commissions
Timmy, reeling from the impact of Annie's Lemonade Stand and her lifetime commission affiliate program, went on the offensive. HE sweetened the deal by matching Annie's program, AND adding 2-tier commissions!

This instantly becomes the talk of the town. He recruits your sister as an affiliate, who will earn 2 cents per referral, and will earn an additional cent on every sub-affiliate's customer as well!
Your sister gets on the phone with her BFFs (Best Friends Forever) and recruits them as sub-affiliates. Before you know it, Timmy has an ARMY of girls and girl scouts, pushing his lemonade. Plus, he's offering girl scout cookies in his product line... further opportunity for his affiliates to earn money!
For now, most affiliate programs opt to only provide single tier affiliate programs. That is very likely to change, as competition for affiliates like you and me increases. After all - traditional ways of advertising are great at reaching huge audiences.
Think TV, radio. They're also great at building awareness. But they are not so good at having the one-on-one conversations. That's where you come in. And that's why these merchants will swing more and more toward 2 tier programs.
My recommendation?
Prioritize 2 tier programs over 1-tier affiliate programs. These give you much more leverage - that is, or the amount of work you do, your results are multiplied in a 2 tier program (versus a single tier, or 1-tier, program).
As always, of course, only work with affiliate programs that are a fit for your niche, your target audience. If you hit people over the head with offers that are only beneficial to you (and not to them), you'll quickly lose their trust. Not good. The trust and respect of your web site community is the most precious asset you have.
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