Setting tiers for commission rates is a great way to incentivise affiliates for reaching set performance targets.
Commission Factory recommends setting a baseline commission rate that allows some flexibility for advertisers to incentivise publishers at key times of the year or around key promotional events.
We highly recommend for advertisers who want to incentivise their top performers to utilise exclusive or custom commission rates. To do this many will offer selected affiliates a custom / individual commission, a level of commission higher than advertised given to specific affiliates based against performance indicators such as sales volumes or in return for greater on-site exposure. These can be short term increases at key promotional periods or can be ongoing depending on what the goal of the increase is.
Some advertiser may choose to have a range of commission rates for different individual affiliate partners or for types of affiliates for example, content, cashback, coupon etc.
Besides incentivising publishers on an individual campaign basis, we also recommend setting a tiered commission structure, where the commission rate increases once certain performance targets are met. This can be set up on the basis of number of conversions or sales revenue generated over the set time period (for example this calendar month, last 30 days, other day range). Multiple tiers can be set.
Having a tiered structure helps to encourage the publishers to reach the higher rate of commission while also ensuring that you are reaching targets and working within ROAS targets.
If you want to set up a tiered commission structure, please contact your account contact at Commission Factory to get this set up. Once done , you should add this to your program description and let you current affiliates know.