|
The power of MLAPs lies in their ability to unlock the huge potential for
increased earnings that lie in the "wasted traffic" that websites receive.
For example, out of 1000 visitors to a website, perhaps a maximum of only 5
might eventually buy any affiliate products that the webmaster would recommend.
The other 995 become "wasted" as they do not contribute in any way to the
affiliate's earnings.
However, many of these "wasted" visitors, would see enough value in these
products to sign up as affiliates themselves and sell the products to their own
contacts and web visitors.
When this happens in a single level affiliate program, the original affiliate
earns nothing. In a MLAP, the original affiliate would also be paid a referral
commission on the sales made by these sub-affiliates.
Depending on the number of levels the MLAP uses, commissions from
sub-affiliate sales get multiplied at each level, resulting in greatly increased
affiliate earnings.
For the affiliate, MLAPs provide a way to maximize the value of their "wasted
traffic" using the viral power of "word of mouth" marketing, without the risks
associated with MLM programs.
For the MLAP merchant, an MLAP allows his affiliate program to sign up
affiliates more effectively by standing out from the crowd of single level
affiliate programs.
Because they are relatively new, certain issues, (such as the ideal number of
levels a MLAP should have, and the percentage of referral commissions that
should be paid at each level), are still open to debate.
What has become clear though, is that MLAPs have become an important option
for both merchants and affiliates, to increase their share of the ever-growing
size of E-Commerce.
|
