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Multi Tier Programs Some advertisers offer multi-tier programs that distribute commission into a hierarchical
referral network of sign-ups and sub-partners. In practical terms: publisher "A" signs up to the program with an advertiser
and gets rewarded for the agreed activity conducted by a referred visitor. If publisher "A" attracts other publishers ("B",
"C", etc.) to sign up for the same program using her sign-up code all future activities by the joining publishers "B" and
"C" will result in additional, lower commission for publisher "A". Snowballing, this system rewards a chain of hierarchical
publishers who may or may not know of each others' existence, yet generate income for the higher level signup. This sort of
structure has been successfully implemented by a company called Quixtar.com, a division of Alticor, the parent company of
Amway. Quixtar has implemented a network marketing structure to implement its marketing program for major corporations such
as Barnes & Noble, Office Depot, Sony Music and hundreds more. This is not considered affiliate marketing. Two-tier programs
exist in the minority of affiliate programs; most are simply one-tier. Programs beyond 2-tier are not considered affiliate
programs, but rather Multi-level marketing (MLM) or network marketing.
Types of Affiliate Sites Affiliate sites are often categorized by merchants (Advertisers)
and Affiliate networks. The main categories are: Search affiliates that utilize Pay per click search engines to promote the
advertisers offers (Search arbitrage) Comparison shopping sites and directories Loyalty sites, typically characterized by
providing a reward system for purchases via points back, cash back or charitable donations Coupon and rebate sites that focus
on Sales promotions Content and niche sites, including product review sites Personal websites (these type of sites were the
reason for the birth of affiliate marketing, but are today almost reduced to complete irrelevance compared to the other types
of affiliate sites) Blogs and RSS Feeds Email list affiliates (Owners of large opt-in email list)
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