Hi to all
today we released new feature: commission tiers.
Now you can setup different commission levels for specific conditions: generated revenue, total number of purchases, referred visitors.
When some of these conditions are met, the app will automatically switch the responsible affiliate in new commission tier (you can disable the auto change).
This is how the interface looks like:
You can find the page for the tier’s settings, in your “Settings” page, option “Commission tiers”.
After you have added few tiers, you will have the option to manually switch the tiers for each of your affiliates, just click on his details window and you will see dropdown with the available tiers.
Note: By checking “Forbid the app to automatiically change this user’s tier”, you will disable the auto switching of tiers only for this user.
Here is an example of how the tiers will work when set
Here is a example screenshot of how the tiers are set
The tiers at this setup are working like this:
– by default the commission of every new affiliate is 5%
– when single affiliate reaches at least 1000$ in referred purchases, the app will automatically move him to tier “earnings 1000” and will change their commission to 10%. This means that their commission for all newly tracked purchases will be 10%. The earnings for already tracked purchases, will not be changed.
– later when another affiliate reaches at least 2000$ in referred purchases, the app will automatically move them to tier “earnings 2000” and will change their commission to 15%. Again this change will be only for the referred purchases after the change.
– and again when some affiliate reaches at least 3000$ in referred purchases, they will be moved to “earnings 3000” and their commission changed to 25%.
Assuming there are following 2 commission tiers (based on total sales amount):
Tier 1: Sales >=$500, commission rate 5%;
Tier 2: Sales >=$5001, commission rate 10%;
Question is:
1. When Sales reach $5500, the commission is cacluated as $5500x 10%=$550; Or ($5000 x 5%)+($500 x 10%)= $250+$50=$300?
The commission will be calculated as follows: ($5000 x 5%)+($500 x 10%)= $250+$50=$300.
Follow up query:
There are commission rate setting for tracking methods, say, under coupon code tracking/Email tracking, the program allows us to set different commission rates for each of them, for example, 2% for coupon code tracking, 5% for email tracking.
Now we also set up this “commission tiers”.
Question:
1. If a customer uses coupon code A by Affliate A for a first purchase for $800, which is the applicable commission rate credited to the Affliate A? The 2% under the coupon code setting Or the 5% under Tier 1?
2. Can the commission rate under each tracking method set as 0, so that no matter what tracking method be used, all commission to be credited will be guided by the commission tier system?
1. The commission rate set for coupon code tracking will be given, i.e. 2% in your example.
2. The commission tiers settings change the default commission for all tracking methods when the conditions are satisfied. If you want to, you can set the default commissions to 0 and your affiliates will not receive commissions until they reach the 1st tier.
Thanks Tsvetlina. With your support, we’ve launched Affiliate program on 1 May with the following setting:
1. 3 commission tiers starting from
Tier 1: $200~$10,000 , 6%
Tier 2: $10,001~$50,000, 9%
Tier 3: $50,001 or over , 12%
2. enable link track, coupon code track, email track (auto associate with the affiliate is enabled under the email tracking).
3. for an easy start, we set all commission rate at zero for link track, coupon track and email track. The basic idea here is to unify all commission reward under 3 commission tiers system
Follow up question:
One of our affiliate (“ affiliate A”) acquired a customer thro coupon code with a net purchase order of about $500. Such order was paid, but not yet delivered. Given the above setting, it should should that the affiliate A should be credited for a commission: $500 x 6%= $30 (because the total net sales generated from such order is over the threshold of the tier 1. However, such commission has not yet been credited to the affiliate A’s account.
Please advise how long does it take, or under what condition, the commission as mentioned in the above case would be credited to the affiliate A?
How does the set up look for this:
Thanks Tsvetlina. With your support, we’ve launched Affiliate program on 1 May with the following setting:
1. 3 commission tiers starting from
Tier 1: $200~$10,000 , 6%
Tier 2: $10,001~$50,000, 9%
Tier 3: $50,001 or over , 12%
How did you set up those ranges in the Tiers Settings?
Hi Al, you need to set something like this in the Commission tiers settings page:
https://www.dropbox.com/s/nm2exxzre8zdpo2/Screenshot%202018-12-16%2013.22.43.png?dl=0
Is it necessary to do tier with 0 commission as shown in the photo above?
We plan to have a coupon code for the first time buyers, but also email tracking to then link that email id to the affiliate for subsequent purchases (without giving an additional discount to the buyer)
We have set recurring commissions to on, with a gradual decline in the commission percentage earned by the affiliate for subsequent orders.
And finally we’ve turned commission tiers on, so that the affiliate gets a higher percentage with increasing sales.
Just wanted to confirm that with this setup, the affiliate still gets paid only once per order. The commission tiers will not end up paying the affiliate over and above the coupon code commission, correct? It will just change the percentage of commission the affiliate gets when that coupon is used, depending on the total sales generated by the affiliate, right?
Is it necessary to do tier with 0 commission as shown in the photo above?
– no, this is needed if you plan to have your commission tiers reset periodically, but can also be used (the 0 condition) to make the commission tiers more clear
Just wanted to confirm that with this setup, the affiliate still gets paid only once per order.
– this depends entirely on the settings of the coupon code in your store. if you don’t wish for the same customer to re-use the coupon code, you will need to set the code with a limit for one use per customer.
Also, the affiliate will get earnings for each tracked order, but with your setup, they will get the coupon code commission for the first tracked order and the email tracking commission for all recurring orders tracked via the email tracking.
It will just change the percentage of commission the affiliate gets when that coupon is used, depending on the total sales generated by the affiliate, right?
– the commission tiers are checking the total referred orders i.e. they will get all orders tracked via the code and email tracking methods. But depending on the commission type that you have set in the commission tiers levels, only that commission type will be changed. I believe I have found your account with us, and you have set the tiers to change the link tracking commission, not the coupon code one.
we are doing a flat rate. Can you tell me if I can do $100 for the first 5 and $150 for the 6-10 and at 11 they get $200? Is the rights way to do this to put the lowest number for each tier in the conditions section and put flat rate for the commission? Also, do I need to note anything else?
Also, I see that you can have the tiers increase automatically, but is we have a special category that we want to assign one group of Affiliates can we do that and how? we would want that to hold until we create another tier for those that are over achievers.
thanks
Hi,
for the different commissions, you can use our Commission Tiers option, and as a tier condition you can choose purchases number i.e. whenever an affiliate reaches certain number of purchases, their commission will be changed.
– yes, this is the right way to go, create a tier for each commission, and the tier on first position, must be the one with the lowest commission.
– you can turn this off and increase the tiers manually, also you can turn off the automatic change of tiers for specific affiliate, just open their details window and check option “Forbid the app to automatically change this user’s tier”.
Thanks. We hope to get this up and running soon! thanks Chris and Tsvetailn
Hi Kathi, Your welcome. Let us know if you need anything else. Best, Chris
Tiered program is good and very important. Thank you. Is it possible to have different tiered programs for different affiliates? And the tier for each affiliate will be changed automatically based on how much revenue they generate. This will be very useful based on our channel management experiences.
Hi Stephen, Unfortunately, tiered commission is Global for all affiliates. You can disable certain affiliates from not being included, however you can only have 1 tier setting.
If we do this
Tier 1: Monthly sales > $0, commission rate 8%;
Tier 2: Monthly sales> $1000, commission rate 10%;
Tier 3: Monthly sales> $2000, commission rate 12%;
Question 1: If we also track coupon code, with 5% commission rate.
When a customer uses affiliate A’s coupon code to place a $1500 order, will this revenue be accumulated in the tiered revenue calculation?
Question 2: If we also track coupon code, with 0% commission rate.
When a customer uses affiliate A’s coupon code to place a $1500 order, will this revenue be accumulated in the tiered revenue calculation?
For Question 1 and Question 2 – yes, in both cases the value of the order will be added to the tiered calculation. The purchases are included no matter the tracking method or the affiliate’s earnings, all that is checked is that the orders are marked as paid.
By the way, note that the commission currently set will change only the link tracking commission. If want and for the coupon code commission to be changed, you will need to duplicate the tiers and for commission type set “code %” i.e.:
https://www.dropbox.com/s/up653u419x5han1/commission_tiers_code_percent.png?dl=0
and
https://www.dropbox.com/s/230oju1svzi6yg0/commission_tiers_code_tiers.png?dl=0
Thank you. So for example, if affiliate A got $1500 revenue from the link, and $1700 revenue from the coupon, what’s the accumulated revenue (& tier)?
$3200?
or $1500 for the link and $1700 for the coupon?
It would be the $3200
So how would you calculate the commission with the below settings, if affiliate A got $1500 revenue from the link, and $1700 revenue from the coupon?
(We lower the commission via coupon because it’s promotional price already with less margin)
Tier 1 < $0 8.00%
Tier 1 coupon < $0 4.00% coupon
Tier 2 < $1000 10.00%
Tier 2 coupon < $1000 5.00% coupon
Tier 3 < $2000 12.00%
Tier 3 coupon < $2000 6.00% coupon
When the affiliate makes their $1500 revenue their account will be switched to Tier 2 and Tier 2 coupon i.e. both commission will be changed. After they refer more than $2000, they will be switched to Tier 3 and Tier 3 coupon.
How do I set up milestones?
Example. I have tier structure:
Tier1 – >1 at 5%
Tier2 >10 at 10%
Tier3 >100 at 15%
Then we want to do milestone where if affiliate generates 50 sales, he gets a bonus of $100. Do we add another tier called milestone1 with condition set at 50, and flat $100? Or that will give the affiliate $100 for every sale from sale# 50, 51, and upwards?
Unfortunately, you are not able to add a bonus/reward.
Hello.. what exactly the two-tier affiliate program does? I mean, what’s the difference between commission tiers and two-tier affiliate program?
The two-tier feature allows your affiliates to recruit additional affiliates and make a commission of each of those referred affiliates’ sales. Commission tiers award the affiliate with increased commissions percentage based on total sales brought in by themselves.
Hello,
How we can make the commission recurring?
For example, if someone stays subscribed for 6 months, they will receive a commission on every order – not just the first one.
Yes, you can have your affiliates earn commission on recurring subscription purchases. You can use email tracking. Here is a link – https://affiliatly.helpscoutdocs.com/article/57-how-to-set-up-tracking-by-email