The power of MLAPs lies in their ability
to unlock the huge potential for increased earnings that lie in the
"wasted traffic" that websites receive.
For example, out of 1000 visitors to a
website, perhaps a maximum of only 5 might eventually buy any affiliate
products that the webmaster would recommend. The other 995 become
"wasted" as they do not contribute in any way to the affiliate's
However, many of these "wasted"
visitors, would see enough value in these products to sign up as
affiliates themselves and sell the products to their own contacts and
When this happens in a single level
affiliate program, the original affiliate earns nothing. In a MLAP, the
original affiliate would also be paid a referral commission on the sales
made by these sub-affiliates.
Depending on the number of levels the
MLAP uses, commissions from sub-affiliate sales get multiplied at each
level, resulting in greatly increased affiliate earnings.
For the affiliate, MLAPs provide a way
to maximize the value of their "wasted traffic" using the viral power of
"word of mouth" marketing, without the risks associated with MLM
For the MLAP merchant, an MLAP allows
his affiliate program to sign up affiliates more effectively by standing
out from the crowd of single level affiliate programs.
Because they are relatively new,
certain issues, (such as the ideal number of levels a MLAP should have,
and the percentage of referral commissions that should be paid at each
level), are still open to debate.
What has become clear though, is that
MLAPs have become an important option for both merchants and affiliates,
to increase their share of the ever-growing size of E-Commerce.