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 sales of all referrals, total earned commissions, total referral quantity, total sales of downline affiliates or total sales of personal volume. 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 the 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 five main types of conditions. Your affiliates will get automatically leveled up once their performance meets the set condition level. The conditions might be based on:
  • Total sales of all referrals: total value of sales your affiliate refers to successfully. Both approved and paid commissions are counted.
  • Total earned commissions: total value of approved and paid commission your affiliate gets.
  • Total referral quantity: total number of sales your affiliate refers to successfully. Both approved and paid commissions are counted.
  • Total sales of downline affiliates (MLM related): total value of approved sales created by downlines of your affiliate.
  • Total sales of personal volume (MLM related): total value of sales your affiliate refers to successfully. Both approved and paid commissions are counted. However, the network commission that your affiliate earns from their downlines will be excluded (in case you enable the Multi-level marketing feature).
To set the condition values, go to Management > Programs > Auto-tier commission.
Switch on "Active" to enable the Auto-tier commission feature. Then, choose one of three conditions and set the program and its condition value accordingly.
  • Each level can be set with 1 program only.
  • The condition value of the higher level must be higher than the lower level.
  • The maximum number of levels you can set is the number of Active programs you have in your account.

For example:

You can choose the Level condition to be the Total sales of all referrals.
There are 3 programs available in the account. You can set the conditions as below:
In this setting:
  • Affiliates who have less than 300$ in total referral sales (only sales of approved commission count) will be on program A.
  • Those who reach 300$ in total sales will be moved automatically to program B.
  • And once they get 700$ in total, they will reach program C.
Once a program is deactivated or deleted, its level condition on the auto-tier commission setting will be removed as well.

Reset Auto-tier level

The function to reset Auto-tier commission after a certain period of time is now available. You can now utilize it to boost sales and optimize your affiliate campaign.
With this function, you can easily select the date on which Auto-tier commission will be reset after a certain period of time, depending on what you set up in the Number of months to reset field.
There are two types of Reset to level that you can choose from:
  • Previous level: It will degrade 1 level from the current level of all affiliates after the reset date.
  • Fixed level: Affiliates will be transferred to the program whose level is indicated after a reset cycle.

For example:

You can choose the Reset level to be the Fixed level:
In this setting:
  • The system will automatically reset all affiliates' levels to Level 1 after 1 month and on the 30th day of the reset month.
  • All levels lower than the Fixed level will not be affected by the reset. Based on the above example, all level 1 and level 2 affiliates' programs will remain unchanged.
  • If the reset date does not exist in a month (e.g. 29th of February or 31st of April), it will be the last available date of the month (i.e. 28th of February or 30th of April).
  • After the tiers are reset, the affiliates only need to earn the total amount of referrals/commissions equals to the next level's condition and the current level's condition. For example: Affiliate A was on level 3 (with the condition = $500 of sales). After the tiers are reset, affiliate A is moved to level 2 (with the condition = $200 of sales). During the current cycle, A only needs to bring ($500 -$200) = $300 of sales in order to level up.