How Do Multi-tier Commissions Work
You can assign commissions to each tier in a multi-tier commission structure so that affiliates benefit from affiliate sales. In the following example, percentages are provided for illustration purposes only.
Commission (1st tier): 20%
2nd tier: 10%
3rd tier: 5%
4th tier: 3%
5th tier: 2%
Having a setup like this would make commission rates pretty straightforward. The first tier receives the majority of the commission from the sale. The percentage trickles "up" to the parent affiliate, then the grandparent, and so on. The following is an example:
If A refers a $100 sale, then:
A gets $20 (1st tier commission)
B gets $10 (2nd tier commission)
C gets $5 (3rd tier commission)
D gets $3 (4th tier commission)
E gets $2 (5th tier commission)
For this sale, you would pay your affiliates $40 (20+10+5+3+2).
Our platform simplifies the process of managing multi-tier commissions while providing transparency and efficiency to your affiliate program. Using our robust features, you can track commissions accurately and reward affiliates for their contributions.
Step 1: Create a New Affiliate Campaign
To learn more about the process check out our detailed guide.
Step 2: Enable Multi-tier Commissions
In step 2 of the process, click on Advance Commissions settings to enable multi tier commissions
Choose the number of tiers you want.
Step 3: Configure Tier-Specific Commissions
Set default or product-based commissions for each tier to incentivize affiliates at different tiers.
