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AShop V User Guide252

5.2 Multi Tier Affiliate Commissions

From the AShop Administration main menu, click Configuration on the left side menu. This will open the

Configure AShop menu. Then select "Affiliate Program".

Multi Tier Affiliate Commission Tracking

Multi tier affiliate commission tracking in AShop Software calculates different types of commissions.

Each affiliate tier promotes your online business in a different way.

Tier one commissions are earned by affiliates who promote your products. Tier one commissions

are set per product by an amount or percentage of the product price and are paid to affiliates for referring

customers who order products directly from your site through affiliate links.

Tier two, three, four... commissions are earned by affiliates who promote your affiliate sales

program. This type of commission is paid to each affiliate who signs up other affiliates (who earn the

tier one commissions for direct referral sales). The amount per order for this commission is typically a

much smaller amount compared to the tier 1 commission rate, however when multiplied by numerous

affiliate sign ups, it creates a powerful incentive to promote your affiliate sales program to earn

commission from a downline of affiliates they have recruited.

How Multi Tier Affiliate Commission Tracking Works

· Tier-1 commissions are set by percentage or dollar amount per product.

· Tier-2 commissions are set by percentage or dollar amount per product.

· Tier-3 commissions are calculated through the "Lower by" value which is subtracted from tier-2. For

example: tier-2 earns 5% commission on a product and "Lower by" is set to 1, which gives tier-3

(the person who referred the person on tier-2, who referred the person who referred the actual

customer) a 4% commission.

· Tier-4 commissions are lowered one more time and so on. From the above example the fourth tier

would get a 3% commission, the fifth tier would get a 2% commission and at the seventh tier the

commission would reach zero which makes this example have a total of 7 tiers. With a small

"Lower by" value, you could get a huge number of tiers and even end up owing more than you get

paid for the products you sell, which is why you should be careful when you set this value and

combine it with the "Maximum number of tiers" option, just in case.

· Every affiliate can potentially earn commission both from referring customers and from referring new

affiliates.

Example:

Affiliate A signs up and places a sign up link on his web site.

Affiliate B signs up through Affiliate A.

Affiliate C signs up through Affiliate B.

When a customer buys something through a link on Affiliate A's site, Affiliate A will receive the tier-1

commission rate for each product that is ordered.

When a customer buys something through a link on Affiliate B's site, Affiliate B will receive the tier-1

commission rate for each product that is ordered and Affiliate A will receive the second tier commission.

When someone buys something from a link on Affiliate C's site Affiliate C will receive the tier-1

commission rate for each product ordered, Affiliate B will receive the second tier commission and

Affiliate A will receive the third tier commission, if any.

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