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What is a two tier profit sharing agreement?

Profit Sharing: Two Tier Agreements

A two tier profit sharing agreement means that you make money not just from your own web site's affiliate marketing efforts, but also from anyone you sign up as a sub-affiliate.

Sub-affiliates are recruited by you and you receive a percentage of any sales they make on their web sites. Typically, the profit sharing plan will specify a larger percentage commission for first-level sales and a reduced commission for your "downstream" sub-affiliates.

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