Is the Program 2Tier

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Another way to increase your affiliate income is to take advantage of '2-tier' affiliate programs.

A "two-tier" program is one that offers two sources of income, the first for bringing in business, and the second for recommending new affiliates. Some programs pay a fee for each new affiliate that joins the program, while some others pay a percentage of the 2nd tier affiliate's earnings. Other programs pay in both situations.

When the subject of 2-tier programs comes up, the question often arises as to whether two-tier affiliate programs are MLM - multi-level marketing schemes.

Well, let's take a look at a definition of 'MLM'.

Also known as network marketing, MLM is essentially any business where payouts occur at two or more levels. For example, any company that compensates you for the sales you make, and also pays you a small percentage of the sales made by those you've recruited as sellers, is an MLM company.

According to that definition, 2-tier affiliate programs are MLM programs.

Does it matter? Should it matter?

Don't let the MLM association scare you or put you off. There are many reputable MLM organizations including Avon, Mary Kay Cosmetics and PartyLite Gifts, Inc.

MLM gets its bad reputation from companies that focus only on recruiting new members and downline-building. Essentially the only 'products' these companies sell are memberships, which you must purchase in order to be eligible to build your own downline of members.

Your primary concern is whether the company you sign up with is selling real goods and/or services that benefit its customers. Focus first on marketing the product, and secondly on recruiting affiliates. That's why it's called 2-tier.

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