There are dozens, if not hundreds of different factors that affiliates have to evaluate when choosing a CPA offer. The type of ad allowed, the payout per conversion, and the product which you’re promoting can all be different. But, most CPA offers have country tier requirements, which means that you can only target the regions that the advertisers are interested in.
Even seasoned marketers can have a hard time understanding country tiers. However, this is a crucial part of your campaign that you have to keep in mind in order to ensure you get paid for all the conversions you generate.
To help you out, we’ve put together a comprehensive guide to help you understand the different country tiers out there.
What are Country Tiers?
In the affiliate world, the term “country tiers” refers to the categorization of regions based on their economy as well as other factors. This is an important practice that helps advertisers define the countries they want to target. Which, in turn, allows affiliates to focus on these areas and attract visitors that are relevant to the advertiser’s offer.
There are three well-defined tiers that all advertisers and affiliates can target. However, it’s also worth noting that some offers will target “tier-4” countries, which refers to areas that have collapsed economies or are currently under international sanctions. Some advertisers find value in traffic from this region, but it’s important to understand what it entails
Understanding the Different Country Tiers
As we mentioned before, there are three major country tiers that affiliates need to be familiar with. These are:
Tier-1 countries produce the most desired type of traffic. These areas have strong, established economies and consumers with high acquisitional power. The list of tier-1 countries includes the US, Canada, the UK, Switzerland, Sweden, Norway, New Zealand, Australia, the Netherlands, Luxembourg, Ireland, Germany, France, Finland, Denmark, Belgium, Austria, Spain, and Italy.
The pros of tier-1 offers include:
- Higher payout
- Usually promote high-quality, appealing products/promotions
- Plenty of offers to choose from
- Well-established traffic sources
Some of the cons of tier-1 offers are:
- Very competitive space
- Much more expensive than other tiers
- More difficult to convert, so they have more risk
- Strict regulations
- Producing creative content may be challenging
Tier-2 describes countries that a smaller, yet well-established or up-and-coming economies. The list of countries is huge, but it contains the likes of Uruguay, the United Arab Emirates, Turkey, Ukraine, Thailand, South Africa, Slovenia, Serbia, Russia, Romania, Qatar, Puerto Rico, Portugal, Poland, Peru, Panama, Nepal, Morocco, South Korea, Mexico, Malaysia, Japan, Israel, Indonesia, Hong Kong, Colombia, Egypt, China, Fiji, Brazil, Argentina, and many more.
Advantages of this tier include:
- Easier to convert than tier-1
- Significantly higher payout than tier-3
- Ideal for mid-level marketers who want to break into bigger markets
- Fewer regulations than tier-1
- Traffic is relatively affordable
- Areas like Brazil and Japan have growing traffic
And, the disadvantages of tier-2 are:
- Traffic doesn’t always produce high-quality leads
- Conversion rates may fluctuate
- Medium profitability
- Multi-language group, so you may have to hire translators and spend more money
As you can imagine, tier-3 countries are lower-stake markets, but they are still an interesting option for many seasoned affiliates. Countries in this category tend to have weaker economies, but widespread internet access has resulted in enough traffic to deem profitable for marketers that take the time to learn the local culture and other relevant details.
Tier-3 pros include:
- Most affordable tier
- Few regulations (if any)
- Low competition
The cons of tier-3 are:
- Payouts are the lowest of all tiers
- Less than optimal conversion rates
- Marketers have to learn the religious and cultural aspects in order to produce quality ads
How Do Tiers Affect Your Campaigns?
The different country tiers have a more profound effect than simply choosing the right offer. Depending on the tier that’s being targeted, you may have language skills, knowledge about the local culture, and other advantages that allow you to create better campaigns.
Furthermore, the GEOs you target also affect the profitability of your campaign. Translation and other services represent additional expenses. Furthermore, you may also want to choose tiers based on your starting capital. For instance, if you have a low budget and want to slowly build it up, you may be better off opting for tier-3 and move higher once you rack up a certain amount of money.
Learn More About GEOs and Other Elements that Affect Your Campaign
Country tiers are just one of the many elements that affect the performance of your affiliate campaign. If you want to learn more about GEOs and other crucial elements, stay tuned to our blog or contact Active Revenue today.