Affiliate Marketing Glossary
What is Two-Tier Program?
An affiliate program structure that pays commissions on two levels: direct sales generated by the affiliate, and sales generated by affiliates they recruit (sub-affiliates). This incentivizes affiliates to grow the program by recruiting other marketers.
Related Terms
Sub-Affiliate
An affiliate who is recruited by another affiliate (the parent affiliate) to join a program. The parent affiliate typically earns a small percentage of the sub-affiliate's commissions, creating a two-tier income structure.
Recurring Commission
A commission structure where affiliates earn ongoing payments for as long as the referred customer remains a paying subscriber. Common in SaaS and subscription-based affiliate programs, recurring commissions provide passive income that compounds over time.