When setting up affiliate programs, you have to ask yourself if it makes sense to have residuals. What I mean by that is, if an affiliate refers another affiliate to your site, should the referer get residual point of sale information.

This helps the affiliate by providing residuals over the life of the program by expanding the base of potential referers; however, makes the site programming somewhat more difficult since you now have to manage affilate names.

Another approach is to have it passive where the affiliate does not need to manage sub-affiliates and a percentage of click throughs goes to the parent affiliate.

The original click-through model for Fizziebooks was 95% to affiliate and 5% to the parent. Any thoughts about bringing back a passive model?