Guide for affiliate

Advanced: Auto-tier commission

What is Tiered Commission Structure?

A tiered commission structure motivates affiliates using commission rate tiers. Unlike flat commission plans, tiered commissions encourage your affiliate team to hit sales milestones. As the performance increases, your members earn a higher commission rate.

The most basic sales incentive plan awards a flat rate—X% or $X on every deal or per item. Tiered commissions, on the other hand, would be paid to the affiliates only if they hit a certain total referral order value, total referral order number or total earned commission value. When well-designed, these plans can increase your overall performance, while remaining easy to administer, understand, and communicate.

When Should You Use a Tiered Commission Structure?

In short, like many business concerns, it depends. Companies often put tiered commission structures into play when they feel that the flat rate plan is not driving a desired performance. Thus, they opt for a plan where they can specifically reward affiliates who over-perform and, at the same time, motivate the "middle-tier" to increase their performance.

How to build an Auto-tier commission structure?

With our app, you can easily build your own auto-tier commission rule with three main types of condition. Your affiliates will get automatically leveled up once their performance meets the set condition level. The conditions might be based on:

  • Total referral order value (total value of sales your affiliate refers successfully, only sales with approved commission are counted)

  • Total referral order number (total number of sales your affiliate refers successfully, only sales with approved commission are counted)

  • Total earned commission value (total value of approved commission your affiliate gets)

To set the condition values, go to Program > Auto-tier commission:

Switch on Active to enable the Auto-tier commission feature, then choose one of three conditions, set the program and its condition value accordingly.

Note:

  • Each level can be set with 1 program only;

  • The condition value of higher-level must be higher than the lower level;

  • The maximum number of level you can set is the number of Active programs you have in your account.

For example:

You can choose the Level condition to be Total referral order value

There are 3 programs available in the account, you can set the condition as below:

In this setting:

  • Affiliates who have less than 500$ in total referral sales (only sales of approved commission count) will be on program level 1.

  • Those who reach 500$ in total sales will be moved automatically to program level 2.

  • And once they get 1000$ in total, they will reach program level 3.

Once a program is deactivated or deleted, its level condition on the auto-tier commission setting will be removed as well.

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