How much should I pay an existing affiliate, when they refer a new affiliate to signup for my affiliate program?

There are tons of gaming offers on clickbank. Big market there for that.

So this model has been attempted before in various formats. As a direct comparison, 3-4 years back there was a company called WidgetBox. They were a startup. Successful in getting funding. Raised at least $8 million. Their changed up their model a few times but their most successful one was nearly identical to what you described. They went directly to various advertisers on a CPA basis and then guaranteed publishers a set CPM based on the agreed CPA with the merchants. Got as high as doing 500 million impressions a month. But they didn't appropriately account for fraud, had to back out on payouts, ended up nearly folding. They were able to pivot and be absorbed into Flite. A less direct comparison of your scenario is very common. Many affiliates these days operate what is considered a sub-network (against the rules of most larger affiliate networks) or a super-affiliate program. Examples are the dozens of loyalty affiliates out there like Upromise who also have their own affiliates (as well as members tracked on sub-ids) underneath them. Being the advertiser's "sole" affiliate is partially where I don't see the model you describe work. Unless your advertisers are completely unfamiliar with the digital space they are unlikely to only work with one company as their sole affiliates. Advertisers like to scale. It's why they work with networks. What ever you decide, Post Affiliate Pro does not have a robust enough of a platform for you to launch with. Beyond that the software's ability to help detect fraud is suspect. HasOffers (know called Tune) is a way better choice. Also recommend looking at Performance Horizon Group. Either way, highly recommend rethinking the "exclusivity" or "sole" component of your model and asking yourself why an advertiser would just go with you?

I believe the commission is just 2 percent and not 7 percent. It's been a while since I've been out of the affiliate game but I believe if you can join their program through commission junction as well.

Yes if you have a site that has traffic these can be great streams of revenue. If you google my name and check or Adsense check you will see me holding a check and what can be possible :)

Mitigate risk. You're asking a store manager to dedicate space that costs money (and must generate revenue) to an experimental (unproven) product. I've seen some cottage industry food sellers here in Detroit work out deals to set up and sell their products at local stores. They get a day or two to show the stores what they can do. If customers respond and buy a lot of the product, it opens the door for more shelf space. If not, the store lost nothing in giving it a try. How do you set this up? Free stuff. Give the decision-maker free samples of your product. If he or she likes it, you're on to the next step. Enjoy making your good luck for yourself! I'm happy to discuss further by phone.