Tiered Commission
A tiered commission structure raises an affiliate's commission rate as they reach higher sales or volume thresholds — for example 10% up to ten sales, then 15% beyond — rewarding top performers with better rates.
Tiered commissions motivate affiliates to push for the next threshold, since crossing it lifts the rate on subsequent (or sometimes all) sales in the period. It concentrates higher payouts on the partners who deliver the most volume.
This differs from a multi-tier (sub-affiliate) program, where a partner earns overrides on the affiliates they recruit. Tiered commission scales with the affiliate's own performance, not with a downline they build.
See also
- 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.
- 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.
- Lifetime Commission
A lifetime commission pays an affiliate on every future purchase a referred customer makes, for the life of that customer, not just the first sale, strongly rewarding partners who bring loyal, repeat buyers.
- Recurring Commission
A recurring commission pays the affiliate a share of every renewal payment a referred customer makes, not just the first sale.
Turn the theory into a live program
Afflio handles tracking, commissions, and payouts so you can run the program these terms describe — start free in an afternoon.
Find brands to promote →