It is great that you have such good questions about tiered affiliate programs.
A 2 tiered affiliate program allows you to bring in other affiliates to the affiliate program. That means if you tell your friend to sign up to the same affiliate program as you and they sign up under your affiliate link you will earn commissions on their activity. So basically you are the 1st tier and your friend is the 2nd tier. Having a 2 tiered progrm allows you to earn extra commissions.
There are some affiliate programs that have more than 2 tiers but you usually see them in online gaming.
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