A 2 tier affiliate marketing program can be defined as a program which involves paying the affiliate on a dual basis. In this type of network affiliate program
the affiliate is allowed to hire affiliate of his own and gets commissions for any sales lead generated by him directly and also for those generated by his co-affiliates. A 2 tier affiliate marketing program is very beneficial as compared to a single tiered one both for the affiliates as well as the affiliate merchants as this involves generation of newer affiliates for the affiliate merchant and dual commissions for the affiliate. Generally the affiliate gets small percentage of his original commission for any sales lead generated by his affiliates. Multi tier affiliate marketing involves paying out commissions for third level affiliates also (third level affiliates are affiliate recruited by the co-affiliates).
Most affiliate merchants today have started offering two tier affiliate marketing programs in order to attract more affiliates. Most even go a step further to offer life time commissions that involve the affiliate merchant to pay out commissions to the affiliates each time the visitor referred by him (affiliate) makes the sale. All this seems to make the situations green for the affiliates.