Question on setting up affiliate program - multi-level payouts

Discussion in 'Affiliate Programs' started by cbc58, Aug 18, 2010.

  1. #1
    Have a question regarding setting up a new affillate program - what is the best structure for a multi-level payout?

    Which of these is better in a mlm type format for an affiliate program?

    a.) pays 60% commission in a 7 level format
    b.) pays 60% commission in a 10 level format

    My question relates to the total amount paid out and the time it takes to get there. With (a), it takes fewer people in the downline, therefore payouts per level are greater, but the number of total people in the downline is reduced. With (b), the payouts per level are smaller, but the total number of people is exponetially greater and therefore more lucrative in the long run (assuming people keep joining).

    Which of these is better do you think from an affiliate perspective?
     
    cbc58, Aug 18, 2010 IP
  2. vipclub

    vipclub Peon

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    #2
    not very familiar with this area
    but for me I'd like to start with simple plans and change according to the development situation
     
    vipclub, Aug 18, 2010 IP
  3. cbc58

    cbc58 Greenhorn

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    #3
    Can anyone shed some light on this subject? Have you set up an affiliate program yourself or do you belong to one that has multiple levels? I can see pros and cons with each from both the company and affiliate side and am looking for real-world perspective on attracting and retaining affiliates.
     
    cbc58, Aug 19, 2010 IP
  4. EmpyreRamiz

    EmpyreRamiz Member

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    #4
    dont go more tier then 2 its will be too much commission to be paid
     
    EmpyreRamiz, Aug 19, 2010 IP
  5. cbc58

    cbc58 Greenhorn

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    #5
    I assume you are saying this as someone paying money out vs. earning. In researching these structures I guess it goes both vertical and horizontal... maybe that's what you mean by 2 tiers... horizontal.
     
    cbc58, Aug 19, 2010 IP