Results 1 to 4 of 4
  1. #1
    Newbie reneewood's Avatar
    Join Date
    June 10th, 2009
    Posts
    5
    Two-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!

  2. #2
    OPM/Moderator Hectic GHC's Avatar
    Join Date
    July 13th, 2006
    Location
    Roswell, GA
    Posts
    2,643
    Renee,

    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.
    Greg Hoffman
    Affiliate Marketing Advocate of the Year 2016; Best OPM/Agency - 2014; Best OPM/Agency, Five Years in a Row - ABestWeb.
    Visit Greg Hoffman Consulting

  3. #3
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    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

  4. #4
    OPM/Moderator Hectic GHC's Avatar
    Join Date
    July 13th, 2006
    Location
    Roswell, GA
    Posts
    2,643
    I found her program in SAS.
    Greg Hoffman
    Affiliate Marketing Advocate of the Year 2016; Best OPM/Agency - 2014; Best OPM/Agency, Five Years in a Row - ABestWeb.
    Visit Greg Hoffman Consulting

  5. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Sharing the Love - Our Revenue Share Program
    By Zane-CommissionFactory in forum Commission Factory
    Replies: 0
    Last Post: October 30th, 2014, 03:24 AM
  2. Revenue sharing
    By user123-2009 in forum Building Traffic, Newsletters & Advertising
    Replies: 0
    Last Post: July 1st, 2010, 11:37 AM
  3. Revenue sharing for my network
    By pneumaticmuffin in forum Building Traffic, Newsletters & Advertising
    Replies: 0
    Last Post: August 18th, 2007, 09:25 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •