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 $X on every deal or per item. Tiered commissions, on the other hand, would be paid to the affiliates only if they hit a certain total referral order value, total referral order number or total earned commission value. When well-designed, these plans can increase your overall performance, while remaining easy to administer, understand, and communicate.
In short, like many business concerns, it depends. Companies often put tiered commission structures into play when they feel that the flat rate plan is not driving a desired performance. Thus, they opt for a plan where they can specifically reward affiliates who over-perform and, at the same time, motivate the "middle-tier" to increase their performance.
With our app, you can easily build your own auto-tier commission rule with three main types of condition. Your affiliates will get automatically leveled up once their performance meets the set condition level. The conditions might be based on:
Total referral order value (total value of sales your affiliate refers successfully, only sales with approved commission are counted)
Total referral order number (total number of sales your affiliate refers successfully, only sales with approved commission are counted)
Total earned commission value (total value of approved commission your affiliate gets)
To set the condition values, go to Program > Auto-tier commission:
Switch on Active to enable the Auto-tier commission feature, then choose one of three conditions, set the program and its condition value accordingly.
Each level can be set with 1 program only;
The condition value of higher-level must be higher than the lower level;
The maximum number of level you can set is the number of Active programs you have in your account.
You can choose the Level condition to be Total referral order value
There are 3 programs available in the account, you can set the condition as below:
In this setting:
Affiliates who have less than 500$ 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.