Refersion relies on the concept of Offers: you can think of offers as a group of affiliates that belong to the same commission structure. We support three different commission structures each with different available options: Percent of Sale, Flat Rate, and Tiered. For all the commission structures below you can choose if shipping and taxes are included in the calculation by going to Account > Settings > Calculation Logic. You also have the option of creating Product Level Commissions for each offer.
Percent of sale
This is the most common commission structure, calculated based on the total value of the order. The commission amount can be anywhere from 0-100%, most offers tend to fall in the 10-20% range.
Flat rate commission structures allow you to give a certain commission regardless of the order value: so long as an order occurred the affiliate will receive a commission. There are two types of flat rate commissions: Flat Rate Per Item and Flat Rate Per Order. Note: discounts are NOT taken into account when calculating flat rate commissions, affiliates will be credited the full commission amount regardless of the order value.
Flat Rate Per Item
The commission is calculated on a per-item basis, with each item receiving the flat rate commission. Quantity is taken into account as well, so order a quantity of the same item will multiply the flat rate commission.
Flat Rate Per Order
The commission is calculated on a per-order basis, with each order receiving the flat rate commission.
Tiered Commission Structure
Tiered commission structures are a great way to motivate your affiliates to promote your products and earn a higher commission. You set a base commission and a duration for the offer; for every new conversion, Refersion would look at the total approved revenue generated by that affiliate over the set duration (the duration is a rolling period) and calculate the commission amount accordingly. For example, a tiered offer is setup as follows:
An affiliate brings in her first order on the first of the January for $120, the commission would be $0 for that conversions.
On the 20th of January, she brings in another conversion for $80, the commission for that order will be calculated at 15% or $12.
On February third she brings in a third order for $200, the commission will be $0 this order because over the past 30 days she had only brought in $80 in revenue, not enough to meet the $100 threshold.
Note: only approved commissions are counted towards the commission tiers.