CPA Affiliate Networks and Tiered Commission Structures

The topic of this article will focus on an item that istime on it they want to show it off and so they include
sometimes misunderstood when it comes to picking aninformation about their "brilliant" commission structure
affiliate company to form a professional relationshipwhen they should really be talking about their products.
with, and many of the points in this article can applyA tiered commission structure for a CPA network is
equally well to many network marketing companiesnot necessary to experience outstanding long-term
that use a similar compensation structure. Thebusiness success, but when it is employed in the right
abbreviation CPA stands for cost-per-acquisition, andway it will create a meritocratic model that will reward
the basic core of this business model is to partner withaffiliate marketers for their hard work by creating a
a company that has already developed an online salessmall residual income that will grow as the scope of
system for gaining leads and customers, and you astheir efforts grows. Here is how you can see whether
an affiliate partner will earn commissions based ona company is doing this the right way or the wrong
driving customers to landing pages and then havingway: If they are treating their commission format as a
that customer perform a certain action such as signingproduct, they will probably have a section of their
up for a newsletter or purchasing a product.website with banners and other affiliate tools that are
The Number #1 Mistake That Affiliate Companies Cansupposed to be used to promote their own affiliate site
Makeand not the products unrelated to the nature of the
If you have been using the internet for any number ofcompany. It does not take a genius to realize that this
years or if you have been watching or readingis redundant circular logic, because for a CPA network
literature or information from the network marketingto be worthy of gaining super affiliates it must have
industry, you can probably remember watching manytwo things: Great products, and a compensation
new companies appear on the scene only tostructure that creates long-term benefits based on
disappear as quickly as they showed up. Sometimesmerit.
this is due to shady business owners which operate aNow this is not to say that any affiliate network that
fly-by-night business model, but more often thehas a section about promoting their own company is
business owner is a person of real integrity that makesbad, but understand that if you are trying to screen out
the same beginner mistakes that so many newwhich affiliate networks are good or bad choices then
entrepreneurs make when starting a new company ora company who puts the promotional material for its
when picking a CPA network to affiliate with.own network ahead of promotional material for their
The number one mistake that so many new CPAproducts can indicate to you that they may be
networks and network marketing companies make isamateurs in the CPA industry and that they may not
this: Trying to promote the compensation plan as if ithave faith or confidence in their own products.
was a product! There is a right way and a wrong wayThere is a much better way to do things if you are on
that an affiliate network can use this type of tieredthe corporate side of the company and you want to
commission structure in their business model: If you doinclude a section about promoting the network itself to
it the right way then you create a system that willearn residual commissions: Wait until a particular
reward your affiliates or representatives withaffiliate crosses a threshold of either a certain dollar
long-term success, and if you do it the wrong wayamount in personal commissions (say $50,000) or has
then you set yourself up for a fall and there is abeen actively working with you for 1-2 years or more,
possibility that you might even end up in legal trouble.and at this point you can send an email that says
The Right & Wrong Ways To Use A Tieredsomething along the lines of "Since you have proven
Commission Structureyourself and your marketing talent, we would like to
This information will benefit both those people who arepresent you with an additional opportunity to market
on the corporate side of CPA networks and alsoour own network to other aspiring affiliates to increase
those affiliates who are looking for a potential affiliateyour residual commissions." An important point here
network to form a long-term professional relationshipthough is to make sure that you do not promote this
with. The reason that so many companies make theidea at any point prior to this, otherwise you run the
mistake of promoting their commission structure as if itrisk of building an enterprise based on the "Ponzi-like"
was a product is ego: They probably spent a long timenotion of simply exchanging money without any real
create what they believe to be an intelligent and fairvaluable products or viable business model.
commission structure, and since they spent so much