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December 24th, 2010, 10:36 AM #1Two-tier revenue sharing
Sorry this is such a basic question I am almost embarassed to ask. I have an interested affiliate ask if we would consider a "two-tiered revenue sharing program"
Our normal affiliate program pays 10%. How might a two-tiered agreement work?
Would it mean that the two tiers would split the 10% commission? Or that they are looking for a higher commission to be split between the two tiers?
If someone could explain or point me to a good resource so that I could figure out what kind of terms this affiliate is looking for.
Thanks in advance!
December 24th, 2010, 10:56 AM #2
Under edit settings, Do you offer 2-tiered commissions? Yes or no.
Two Tier Percentage
(Based on Commission given to First Tier Affiliate)
Two Tier Bounty
(Dollar amount given to Affiliate A for recruiting Affiliate B)
I see several two tiered bounties coming through every month in some older programs. But it's not as used as it was in the last ten years. If you think the affiliate can recruit other relevant affiliates, you an activate this service and pay them whatever you can - for example 5% of the commission given to the first tier affiliate or $1 for recruiting another affiliate. See what works best for the affiliate and make your decision based on margins and need.
December 24th, 2010, 10:32 PM #3
- Join Date
- January 18th, 2005
Greg, that sounds like in Shareasale, I don't know if it is the same way in the other networks.
Renee basically yes you would split the commission you can pay into tiers. So if you have 10% available, you would go something like 8% on tier 1 and 2% on tier 2, or like Greg said you can just give a bounty for the recruit. More often if you have been asked the recruiting affiliate would like a recurring commission for every sale the affiliate they recruited makes.
There are two ways of thinking on this and much discussion here on ABW in the past. If your product is something that affiliates think they can recruit more affiliates to sell than they can sell themselves, they would like 2 tier so they make the money from the recruits.
If your product is one that affiliates are more likely to sell directly, they would like a higher commission up front and not have you split it with a second tier.
Unfortunately I don't think it can be set up where you can set some affiliates to 2 tier and others not. It is all or nothing in most tracking systems.Deborah Carney
TeamLoxly.com BookGoodies.com ABCsPlus.com
December 26th, 2010, 09:03 AM #4
I found her program in SAS.
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