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Team Fusion Marketing Part I: The Death of Two-Tier Affiliate Programs
by Mark Joyner

(Warning: This article may be confusing because it addresses some very new concepts, and new concepts are always the hardest to understand. The summary at the end should make things clear.)

'Two-tier' affiliate marketing is dead.

Yeah, you read that right. Just let that sit there for a minute and get used to it. Most two-tier affiliate program managers know this, though they are afraid to admit it to you.

Don't worry, though. It's about to be replaced by something much much better. It's on the tip of everyone's tongue, but everyone's afraid to say it because at its core is a word that some may find taboo.

What is this taboo word?

Before I explain, you'll need a little background. I've learned a lot this last year from my various successes and failures (I've experienced both in the extreme this year) and I've completely changed my thoughts on Internet Marketing as a result. Many of the core ideas I've had are still quite valid and quite effective, but only in the last month have I truly grasped the power of what the Internet can be.

First, let me unveil some myths about "two-tier affiliate programs" and what people won't tell you.

First, they are not a marketing cure-all. In fact, they're not even what people say they are. Vendors erroneously think that they will get 'swarms of affiliates' to market their products for them at zero-cost.

The reality is somewhat different, though. You may in fact get swarms but only 5% will do anything and only 1% of those who do anything will do anything worth mentioning. (This isn't your fault, as the affiliate, though - I'll explain the solution in a minute.) Affiliates erroneously think that they will recruit a swarm of affiliates who will sell products for them and earn an endless passive income stream.

Guess what? It just doesn't happen. Because of the math mentioned above, the only significant money you'll make in any affiliate program is from your own personal sales.

The answer to this problem, though, is so glaringly simple that no affiliate program on the net I know of notices it. More on this in a minute.

Next, affiliate program managers will go to great lengths to tell you something else that isn't true: "Oh, we're not an MLM - we're a two-tier affiliate program!"

[Why is 'MLM' such a scary taboo word to some people? In case you don't know, MLM is short for multi-level marketing (aka 'Network Marketing' - which is a much better phrase in my opinion and is one step closer to Team Fusion Marketing). There really is no rational reason for the taboo - more on this in a minute.]

To some people, when you add the 3rd tier you magically become an MLM program. Let's think this through. As much as I'd like to say 'multi' means 'more than two' - duh, it is in fact not that simple. However, no matter how you slice it, two-tier is beneficial for neither the affiliate nor the merchant. Let's see why.

There are in fact some regulatory agencies that do make this distinction. To them you're technically not an MLM if you have only two tiers. If you add a third, you are considered by law an MLM.

This distinction is only important because of the extra regulations that make doing business as an MLM a little more difficult. These regulations are all in favor of the consumer, though, so there is no real reason to avoid this unless the merchant is lazy.

Some may avoid that third tier to avoid the extra regulatory hassles, but I doubt anyone in their right mind would consciously make this decision out of laziness. The problem is one of education. Somehow, the Internet industry developed this two-tier is OK but three or more is not. Attitude. Perhaps a lazy merchant created this argument to justify their program only having two tiers. Who knows?

Bottom line is, if you're going to reward affiliates for bringing in additional affiliates, why not allow them to get the full benefit of their efforts? An MLM with many levels more fully allows affiliates to reap the benefits of their recruiting. (Even most MLM's don't do a great job of doing this, though - more on how Team Fusion Marketing addresses this in a minute.)

So, two-tier affiliate programs from a marketing perspective truly are MLM. If you run a two-tier affiliate program, you definitely run an MLM - you just run a bad MLM!

OK, now before you let this statement get you mad, take this into consideration: Here I am, one of the former die-hard proponents of the two-tier affiliate model and the founder of some of the largest and most successful two-tier affiliate programs on the net saying this.

If anything, I'm calling out myself (and many of my closest friends) here, so please don't take offence if you are the owner of a two-tier affiliate program.

I was there myself, and I'm sure you'll be able to resonate with everything I say here, because you experience the same woes. Taking all of this into consideration, we can easily see why the preference of two-tier programs over MLMs is mostly caused by some misconceptions and mis-information in the industry.

If you're going to reward people for recruiting - do a good job of it! The only other reason one would want to distinguish themselves from Network Marketing (MLM) is the unfair 'bad rap' it has received.

Now, Network Marketing itself is a great business model for a company. Your up-front marketing costs are very low and you pay for marketing only when you generate sales. What could be better? (Especially in an economy like this, Network Marketing is especially attractive for business.)

Further, it's a great way for average people to make extra money: Find a product you believe in. Offer it to people who trust you. Slowly build a team of loyal customers and fellow networkers. And as public trust in huge companies continues to erode, it is only the trust we have built with our genuine friends and close business associates that remains. True Network Marketing capitalizes and builds upon this.

Unfortunately, Network Marketing leaves a bad taste in some people's mouths, not because of Network Marketing per se, but because of the practices of some bad companies and bad sales reps. Many scams operate under the guise of Network Marketing. Let's not do away with the great model that is Network Marketing - let's do away with the scams.

Many unscrupulous sales reps use Network Marketing as the platform for their unsavory and unethical tactics. Let's not do away with the great model that is Network Marketing - let's do away with the bad sales reps. Why throw away the most powerful business model in the history of the world because it has been misused by so many?

That would be like saying 'Down with the Internet! You'll find porn and hate speech there!' The Internet, of course, is the most significant technological advancement since the printing press. How about: 'Down with water! Sometimes people drown!' You see how absurd this is.

Now, before you think that Team Fusion Marketing is just Network Marketing, please remember that this is just the foundation for something much greater and much more powerful. The purpose of this article was just to point out a few things:

Two-Tier Affiliate Marketing is dead. Legally, it's not MLM, but there is no true benefit in this distinction unless you're lazy. From a marketing perspective, it's actually MLM - but bad, watered-down, MLM. Affiliates are not rewarded as well for their recruiting efforts as they should be. Why not let them reap the full rewards?

Network Marketing (MLM) should be embraced. It is truly the most powerful business model known to man if done properly. Let's work together to get scam programs to straighten up or shut down. Let's work together to send unscrupulous salesmen back to the used car lots and out of the Network Marketing arena.

Honest and fair sales practices should be encouraged and rewarded. The opposite should be regulated by the industry itself. (Let's not go on witch-hunts, folks. Let's just help people do what's right. We don't need professional watchdog organizations or anti-anything fanatics. We just need common sense and team work.)

Most marketers participating in either two-tier affiliate programs or MLM do not make much money on levels below themselves. This problem is addressed by the Team Fusion Marketing model which will be outlined in part II. So, this article explains the "why," Part II explains the "what."

Stay tuned,

All the best, Mark Joyner CEO, Aesop.com Co-Founder of Guerrilla Marketing Bombshells #1 International Best-Selling Author of "MindControlMarketing.com"

P.S. If you're anxious and you are ready for Team Fusion Marketing, you can sign up here: http://www.roibot.com/w.cgi?R64222_GMB  for Guerrilla Marketing Bombshells - the first and only company created around the principles of Team Fusion Marketing.

Team Fusion Marketing is a marketing model created by Mark Joyner to answer the many problems associated with Network Marketing, Affiliate Marketing,  Internet Marketing, and Direct Marketing. It is a fusion of many marketing disciplines that creates a more powerful marketing model for the future. The above article explains the principles of Team Fusion Marketing.

If you're interested in a real-world example of Team Fusion Marketing, you can sign up for
Guerrilla Marketing Bombshells, here: http://www.roibot.com/w.cgi?R64222_GMB
the first and only company created around these principles