How to Set Up Multi-Tier Commissions

Introduction to Multi-Tier Commissions

Multi-tier commissions, also known as multi-level marketing , allow you to reward not just the affiliate who makes a sale but also their network of sub-affiliates. This system encourages affiliates to recruit others, expanding their reach and creating a layered network of income opportunities. Our platform supports up to 7 tiers, enabling flexible and customizable commission structures for your campaigns.

How Multi-Tier Commissions Work

In a multi-tier commission structure, affiliates earn commissions not only on their direct sales but also on the sales generated by their sub-affiliates across multiple levels (tiers). Each tier can have a different commission rate, providing opportunities to incentivize both top-level and sub-level affiliates.

Example 1

Affiliate Chain Setup:

Let’s say your commission structure is set up as follows:

• 1st Tier: 20%

• 2nd Tier: 10%

• 3rd Tier: 5%

• 4th Tier: 3%

• 5th Tier: 2%

In a setup like this, the commission distribution is simple. The first tier(where the sale happened) receives the largest share of the commission, and as the percentages decrease, the earnings are passed up to the referring affiliates in the higher tiers. For example:

If Jan refers a $100 sale, then:

1. Jan (1st tier affiliate) earns $20.

2. Toby (Jan’s recruiter, 2nd tier) earns $10.

3. Ryan (Toby’s recruiter, 3rd tier) earns $5.

4. Jim (Ryan’s recruiter, 4th tier) earns $3.

5. Michael (Jim’s recruiter, 5th tier) earns $2.

Total Paid to Affiliates: $40

($20 + $10 + $5 + $3 + $2)

This tiered system ensures that as the network grows, the upper-level affiliates continue to benefit from the performance of their sub-affiliates.

Example 2

Affiliate Chain Setup:

Same setup as before but this time Stanley refers a $100 sale, then:

1. Stanley (1st tier affiliate) earns $20.

2. Dwight (Stanley's recruiter, 2nd tier) earns $10.

3. Michael (Dwight's recruiter, 3rd tier) earns $5.

Total Paid to Affiliates: $30

($20 + $10 + $5 )

Steps to Set Up Multi-Tier Commissions

2. To begin, click on "Marketing."

3. Click on "Email Marketing."

4. Next, click on "Affiliate Manager."

5. Now, select "Campaign."

6. Navigate to the campaign, then click the three dots for more options.

7. Choose "Edit Campaign."

8. Click on "Next."

9. Then, click on "Advanced Commission Settings."

10. Select the number of tiers you want to activate (up to 7).

11. Configure Tier-Specific Commissions.

12. Finally, click on "Save."