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How To Create A Tiered Commission Structure
How To Create A Tiered Commission Structure

Learn your options for setting up a tiered (incentive-based) commission structure.

Andre Tan avatar
Written by Andre Tan
Updated over a week ago

A tiered commission structure is one of the tools you have to build incentives right into an offer. It works like this:

  1. You set a base commission, duration, and type. Then you add tiers with incrementally higher commissions, motivating affiliates to sell more and earn more.

  2. 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.

Note: Only approved commissions are counted.

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 not receive any commissions on the 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.

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 brings in their first order for $80, at 0% commission.

Two weeks later, they bring in a $120 order, and the commission on that conversion would be calculated at 15%.

See The Affiliate’s Current Tier

If you want to know what tier an affiliate is in at any given time:

  1. Click on the affiliate’s name to go to their page.

  2. On their page, you’ll see current tier information directly under their name.

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