Affiliate Marketing:The Reward Of Direct Referals

Aside from the profit potential of affiliate marketing from your own efforts, you can also earn money from “direct referrals”. When you introduce a new affiliate to the program, they become your direct referral, or sub-affiliate. Affiliate programs will pay you a commission for every direct referral you make. This is sometimes called a “residual” to distinguish it from the commissions paid in relationship to product or service.

While direct referrals are the most common type of residuals you can earn, you can find some affiliate programs that will pay you a residual on different levels, also called “tiers”.There are affiliate programs that have an unlimited number of tiers. These are Multi-Level programs. Tiers are just like steps, in a 2 tier program; your referral link is tier one, the visitor who clicks the link they find on your website and becomes an affiliate of the company is your direct referral or sub-affiliate. When they place their referral link on their own website, their referral link becomes tier two. The commission for each sub-affiliate usually is not as generous as for your own direct sales.

In a 3 tier program, the same process is extended; you are paid a commission or residual when your direct referral’s link is clicked on their website and as a result another person becomes an affiliate of the company. You now in a position to earn commissions three different ways:

1. By referring visitors to the company website that results in a preferred action
2. Through a referred visitor who becomes an affiliate of the company
3. Through payment of a certain percentage from the first referral, a smaller percentage from the second referral and on through the number of tiers in the program for each sub-affiliate.

Depending on the number of tiers in an affiliate program, and the promotional efforts of your self and your sub-affiliates, residuals can add between 5-10% to your overall commissions.

You can create your own websites that can systematically generate income for you day or night, even while you sleep. You can link your web sites to the Online Merchants you represent, and earn commissions from the visitor traffic you “Drive” to them.