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2-Tier Affiliate Commission Tracking
Two tier affiliate commission tracking in AShop Software calculates
different types of commissions. Each affiliate tier promotes your
online business in a different way.
Tier one commissions are earned by affiliates
who promote your products. Tier one commissions are set
per product by an amount or percentage of the product price and
are paid to affiliates for referring customers who order products
directly from your site through affiliate links.
Tier two commissions are earned by affiliates
who promote your affiliate sales program. Tier two commissions
are paid to each affiliate who signs up other affiliates (who earn
the tier one commissions for direct referral sales). The tier 2
commission rate is set as a percentage of the order subtotal (before
taxes and shipping, if any). The second tier amount per order is
typically a much smaller amount compared to the tier 1 commission
rate, however when multiplied by numerous affiliate signups, it
creates a powerful incentive to promote your affiliate sales program.
How 2-tier Affiliate Commissions Work.
- Tier-1 commissions are set by percentage or dollar
amount per product.
- Tier-2 commissions are set by a percentage of
the order subtotal (before taxes and shipping).
- Every affiliate can potentially earn tier-1 and/or
tier-2 commissions.
- Tier-1 commissions are earned by direct sales
referrals.
- Affiliates earn tier-2 commissions from sales
of other affiliates who signed up through them.
Example:
Affiliate A signs up and places a sign up link on his web site.
Affiliate B signs up through Affiliate A.
Affiliate C signs up through Affiliate B.
When a customer buys something through a link on Affiliate A's
site Affiliate A will receive the tier-1 commission rate for each
product that is ordered.
When a customer buys something through a link on Affiliate B's
site Affiliate B will receive the commission rate for each product
that is ordered and Affiliate A will receive the second tier commission,
which is set as a percentage of the order subtotal.
When someone buys something from a link on Affiliate C's site Affiliate
C will receive the tier-1 commission rate for each product ordered
and Affiliate B will receive the second tier, which is a percentage
of the order subtotal.
Each affiliate places a sign up form link and a sales link on his
or her web site. Each affiliate earns the tier-1 commissions for
AShop sales that come through his sales link and also earns a smaller
commission for sales by the affiliates that have signed up through
his or her sign up form link.
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