marketing, affiliate-marketing, payI notice that Amazon had, and HostGator has an affiliate model where people who bring traffic get paid on an increasing schedule based on how much of the product they manage to get sold.
What is the advantage to structuring your payouts this way?
First thought: It motivates affiliates to sell more and more, since their next payout is always larger than their last payout.
Having affiliates sell more and more is good for the main company, of course. And so long as the main company keeps making a profit on each sale (even if it gets smaller and smaller), they will stay happy.
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