Multi-Tier Affiliate (Sub-Affiliate)
A multi-tier affiliate program lets affiliates earn a commission not only on their own sales but also on sales made by the sub-affiliates they recruit.
In a multi-tier (or two-tier) program, a partner earns their normal commission on direct referrals plus a smaller override on the activity of affiliates they introduced to the program. The recruited partners are called sub-affiliates.
This incentivizes affiliates to grow the program for the merchant by bringing in other partners. It should not be confused with pyramid schemes: legitimate multi-tier programs pay on real sales generated, not on recruitment fees.
See also
- Affiliate
An affiliate is an individual or company that promotes another business's products in exchange for a commission on the sales or actions they generate.
- Commission
A commission is the payment an affiliate earns for each qualifying conversion they drive, set as a percentage of the sale or a fixed amount per action.
- Referral
A referral is a new customer or lead brought to a business by an existing customer or partner, typically tracked so the referrer can be rewarded.
- Deal Registration
Deal registration is a process that lets a partner formally claim a sales opportunity so they receive credit and protection if the deal closes.
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