Multi-level marketing vs two-tier
Multi-level marketing pays people several levels up a chain, and often pays for recruiting, buying stock or hitting team volume. A two-tier affiliate program pays two people per sale, the seller and their direct recruiter, and only when a real customer buys.
Also called: MLM vs two tier, is two-tier affiliate MLM, network marketing vs affiliate.
Worked example: $100 sale, three people in a chain
- The seller (20%)
- $20
- Their recruiter (5% of the sale)
- $5
- Whoever recruited the recruiter
- $0 on two-tier
In more detail
They share an idea: someone who brings a seller earns from that seller. The honest difference is depth and what earns money. In two-tier programs no one pays to join, there is no stock to buy, and the second level is a small share of a real sale.
A two-tier program can still be run badly, for example by paying for sign-ups. Check what triggers payment before you join any program.
How ViralPayouts handles it
Two levels only. Nobody is paid for a sign-up, nobody pays to join, and an override is paid only on an approved sale.
Multi-level affiliate tracking