You have probably heard that the choice of GEO is influenced not only by the offer itself and the advertiser's wishes, but also by the budget and experience of the arbitrageur. For example, arbitrage traffic from tier 1 countries is not recommended for beginners - there is high competition there, which is why a lead costs much more than in tier 3 countries. But for such traffic and affiliates pay much more. In addition, new horizons open up for working with tier 1, for example, SS offers.
The entire list of countries in arbitration is usually divided into tiers - tier 1, 2, 3, 4. In this article, we will talk about what the division into tiers means, which countries belong where, and which GEO a beginner should choose.
What is tier 1, 2, 3, 4 countries and how to choose the right GEO for arbitrage
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What does it mean to divide countries into tier 1, 2, 3
The term "tier" refers to the division of countries by some criteria. For example, in marketing it is common to divide countries by the human development index. This index is influenced by:
earnings of the population;
purchasing power of the population;
welfare of the population;
average life expectancy;
availability of various material goods for life;
cost of various services.
It is important to understand that the division of countries is very conditional. For example, some tier countries can be classified as both tier 2 and tier 1, while some tier 3 countries have long since reached the tier 2 level. Because of this, there are constant disputes on the Internet and in arbitration chats. Webmasters cannot decide which countries belong where and refer to different sources that were written at different times.
If we talk about general characteristics, the picture looks like this:
tier 1 countries - geo in which the population has a good salary, a high level of education, and good welfare. This is a geo with high purchasing power;
tier 2 countries - geos with average purchasing power, average wealth, and average education level. Many tier 2 countries border tier 1;
tier 3 countries — geo with low salaries, low purchasing power, poor education. The population of these countries often cannot afford a vacation or an expensive purchase.
There is also a certain tier 4 - these are countries where the population has a very low income and standard of living. Most often, these are sanctioned countries, where the arbitrator simply will not work.
The division of geo by tiers in arbitration is very similar to the marketing division, only for arbitrators the tier is affected by:
the amount of payment for the offer;
cost of attracting a lead;
advertising flow rules;
standard of living of the population.
Competition in tier 1 is higher than in tier 2, the rates are also higher, but not always. For example, traffic from the US and Canada pays well in many verticals. Only the US is a stable tier 1 geo, and Canada is classified as tier 2 and tier 1, depending on the period and media.