A tiered commission structure is one of the tools you have to build incentives right into an offer. It works like this:
You set a base commission, duration, and type. Then you add tiers with incrementally higher commissions, motivating affiliates to sell more and earn more.
Based on how you choose to calculate each tier (by sales or conversion count), we’ll look for those numbers over your set duration (a rolling period), and calculate the commission accordingly.
Please note: Only approved commissions are counted, and conversions are counted regardless of the affiliate's offer history (moving an affiliate from one tiered offer into another tiered offer will not reset their conversion count/affiliate sales for tier tracking).
First, let’s discuss Duration, and what that means: Duration is how far back in time you want us to look at an affiliate’s sales or conversion history. This can be from 30 days to the Lifetime of the affiliate account.
Now let’s break down your options for calculating each tier: by Conversion Count and by Affiliate Sales.
Tiered Structure By Conversion Count
With this option, your tiers will be set based on the total approved conversions the affiliate had within a selected time period. In the example below, the affiliate would receive 5% commission on their first 9 conversions. They would receive 10% on conversions 10-20, 15% on conversions 21-30, and 17% after that, and this will continue on a rolling basis.
Please note: Each tier should start with the number that the previous tier ended with.
Tiered Structure By Affiliate Sales
With this option, the tiers are based on the total dollar sale amount during the selected time period. In the example below, an affiliate would bring in their first order for $80 at 5% commission.
Two weeks later, if they bring in a $100 order, then the commission on that conversion would be calculated at 15%.
See An Affiliate’s Current Tier
If you want to know what tier an affiliate is in at any given time:
Go to Manage>Affiliates.
Click on the affiliate’s name to go to their profile.
On their profile, you’ll see current tier information directly under their name.
What's Next?
Once you've created a tiered commission structure as an incentive for your affiliates, then you should reach out to your affiliates to let them know about their opportunity to earn more commission! You can review your options for communicating with affiliates to get started.