One Tier Verses Two Tier

One tier affiliate programs pay commissions on one level. For each sale an affiliate makes, they will receive a commission. For example, if a company offers their affiliates a 30% commission and their product sells for $39.99, for every sale you make, you would receive a onetime $12 commission.
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Two tier affiliate programs pay commissions on two levels. Affiliates will receive a commission for each sale they make and for each sale their recruits make, which means you would have to get others to join the affiliate program.
Two tier affiliate programs usually divide the commissions over the two levels. For example, if a company wants to give their affiliates a total of 30% commission for each sale, they would offer a 20% commission on their first level sales and an extra 10% commission on second level sales. If their affiliate makes a $39.99 sale, they would receive an $8 commission. If one of their recruits makes a sale, they would receive an additional $4 commission.
Although this may look good on paper, my experience has been that the one tier affiliate program is much more profitable than the two, as most affiliates never make any money. Why? Because they fail to try…