There are many people in the affiliate industry that consider multi-tier affiliate programs to be a negative thing for the affiliate community. The negative association appears (from what I have seen) to be linked with issues regard pyramid scheme style programs. This can often lead to affiliate programs who have no relationship to these types of schemes being labelled as un-trustworthy, merely because they allow sub-affiliates to exist.
The ability to promote to other affiliates about a specific affiliate program and receive a commission for bringing that affiliate into the program, to myself, is a natural occurance. Why would an affiliate program not want new affiliates and why would the promoter not deserve a cut? It is the reason for affiliate programs.
Regardless of your stance on this, most affiliate programs that I have come across globally allow promotion to sub-affiliates although the revenue to the promoter is not usually very high as the margins are cut back significantly for the affiliate program when more than one person is involved. The key here is for the program to be very up-front with any joining affiliate when they have signed up through another affiliate’s tracking link.
Interestingly, in New Zealand affiliate programs, I have yet to find a program that allows for sub-affiliates and the promotion of the affiliate itself. I am unsure if this is a techincal issue, as many New Zealand affiliate progams are developed in-house and are therefore not as technically advanced as other larger programs, or if this is a larger issue with the New Zealand affiliate market believing there are problems with multi-tiered affiliate programs.
As I research further into the New Zealand market and the programs available we will see.