Second-tier commissions in affiliate marketing refer to a system where affiliates can earn commissions not only for the sales they directly generate but also for the sales generated by affiliates they referred to the program. This creates a multi-level structure where affiliates can benefit not only from their own efforts but also from the efforts of those they recruit.
- Incentivizes Recruitment: Offering second-tier commissions provides an incentive for affiliates to actively recruit and mentor new affiliates. This can help in expanding the affiliate network, which ultimately leads to more sales and exposure for the merchant.
- Motivation for Affiliates: Knowing that they can earn additional income from the efforts of affiliates they refer, existing affiliates may be more motivated to actively support and assist their recruits. This can lead to a more engaged and collaborative affiliate community.
- Rewards for Leadership and Mentorship: Affiliates who excel at mentoring and guiding their recruits should be rewarded for their leadership skills. Second-tier commissions recognize and compensate affiliates for their role in developing a successful team.
- Long-term Growth Potential: Second-tier commissions can lead to exponential growth as the affiliate network expands. Affiliates have a vested interest in helping their recruits succeed, which can lead to a self-sustaining cycle of recruitment, training, and sales.
- Diversification of Income Streams: Affiliates can diversify their income sources by not relying solely on their own sales. They have the opportunity to earn from the combined efforts of their recruits, which can provide stability in income.
- Attracts Experienced Affiliates: Experienced and successful affiliates may be more inclined to join a program that offers second-tier commissions. Knowing that they can benefit from building a team may entice them to participate.
- Competitive Advantage: Offering second-tier commissions can make an affiliate program more attractive compared to programs that only offer first-tier commissions. This can be a differentiating factor in a competitive market.
- Go to Marketing > Affliate Manager
- Navigate yourself to Campaigns, Create new campaign for running two tier commission.
- While creating campaign, there will be option to add the first tier commission and second tier commission
4. First tier commission will rewarded to the affiliate that made the sale and Second tier will be rewarded to parent affiliate who referred the affiliate. Once the commission for 2nd tier is set using flat or percentage.
5. Once the sales goes through by affiliate, the parent affiliate can check the network and sales commission for each affiliate in the network.
Also, payout reflect second tier commission collection