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May 21st, 2006, 12:51 PM #1
Question about Tiered % Incentives
- Join Date
- May 20th, 2006
Hello friends! Itís my first post in this forum. I'm surprised I was able to get my username!
A merchant offered us tiered monthly percentage incentives with nothing mentioning a delay in how they work. After we met the first tier, we notified the merchant and assumed that we would receive a bonus check for the additional percentage earned. But the merchant disagreed and said that achieving the performance marks meant that our commissions would be raised to the new level for the next month. Is the delay a standard practice in the retail industry?
May 22nd, 2006, 03:06 AM #2
Which program and which network? With CJ i know there is a delay before you get paid the performance incentive...Pretty sure you don't have to wait until the next month to get raised to the next tier though...
May 22nd, 2006, 05:54 AM #3
- Join Date
- October 27th, 2005
i dont really know of any such "standard"...there is no need to disclose any particulars.
merchants in general can structure their program and tiers anyway they see fit.
myself i find the best ones tend to run on a flat scheme and you get personally notified when you cross a threshold that they know only about...sometimes...but most the time if you dont say anything it remains static.
seldom have i joined a program that offers the "over 100 or whatever = x in bonus" and it turned out to be a cherry.
not always, but a good chunk of the time, in my experience in the least, that sort of stuff tends to be crap...hence the need for the hyp-bait.
May 22nd, 2006, 08:02 AM #4
- Join Date
- January 17th, 2005
They all seem to be different. Some up the commission reported during the month. Some wait until the final tally after the return period has expired. I've always gotten my commissions on all of my tiered programs. Contact the affiliate manager if you have concerns.
May 22nd, 2006, 08:20 AM #5
The standard most places is that once you hit the higher tier, you're compensated at that level for all of your sales for that month.
The standard at CJ is that the additional percent is a bonus that is paid 2-3 months later.
A few merchants here or there have things a little different, but it's pretty rare. I haven't seen any that do what you describe, and I've worked with hundreds of merchants.
Once in a while, tiered sales work like US federal tax rates. You'll get the base rate on a set amount of sales, a higher rate on sales within the tier, and so on. For instance, if 10% on first $1,000, 15% on $1,000 - $5,000, and 20% on everything over $5,000, on sales of $6,000 most companies would pay $1200 ($6000 x 20%) but some would pay $900 ($1000 x 10% + $4000 x 15% + $1000 x 20%).
I think there's at least one out there that will lock you in once you hit a tier. For instance, if you hit the tier for 20% commissions one month, you'll get paid 20% (or more, if you hit higher tiers) every month even if your sales are below the level required for 20%. This is about the only good change to tiered programs that I've ever seen.
It's always best to find out in advance, or just to avoid tiered programs alltogether. Tiered programs can be very frustrating, especially if they aren't standard.
May 22nd, 2006, 11:39 AM #6
Michael is right. For our program when you hit a milestone you receive a perfromance incentive for the next commission level. It applies to that months sales and doesn't show up until 2 months later which means you get paid a month after that.
We are going back to see when these hit and increasing commissions so the affiliate sees the money sooner.
May 24th, 2006, 09:14 AM #7
- Join Date
- May 23rd, 2006
- Cleveland, OH
Our program is similar to what Michael has described at the beginning of his post. We are using MyAP and the appropriate teired percentage is applied at the end of the month, therefore the higer percentage is applied to all sales for that month. Commissions are paid the month after the sales have been validated. Hope this helps!
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