Multi-Tier Commissions

What is the definition of Multi-Tier Commissions? Learn what you need to know about this term.

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What are multi-tier commissions?

In affiliate marketing, a multi-tier commission structure provides different commission amounts to affiliates based on their past performance.

Commissions at each tier level might be permanent or temporary, depending on the program. Some programs base commissions on to the affiliate’s recent performance, such as the last month or year. Thus, it is possible in some programs that an affiliate might earn a higher commission rate one month and then a lower commission rate the next month.

For example, an affiliate program might offer affiliates a 5% base commission and then temporarily raise it to 10% for any month that the affiliate brings in over 20 sales.

Multi-tier commission structures should not be confused with multi-tier affiliate programs, such as a two-tier affiliate program.