Some advertisers offer multi-tier programs that distribute commission into a hierarchical referral network of sign-ups and sub-partners. In practical terms, publisher "A" signs up to the program with an advertiser and gets rewarded for the agreed activity conducted by a referred visitor. If publisher "A" attracts publishers "B" and "C" to sign up for the same program using his sign-up code, all future activities performed by publishers "B" and "C" will result in additional commission (at a lower rate) for publisher "A".
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Affiliate programs are arrangements where an online merchant that’s selling products pays an affiliate website a commission for any sales generated from their referral traffic. The affiliate website places affiliate links pointing to the merchant’s site to track transactions. Each agreement between an affiliate and a merchant features the commission structure and payout information.