Multi-Tier Commission System
Set up a two-tier affiliate program where affiliates can recruit sub-affiliates and earn commissions from their referrals' sales.
How It Works
Two-Tier Structure
- Tier 1 (Parent): Original affiliates who recruit others
- Tier 2 (Child): Affiliates recruited by Tier 1 affiliates
Commission Flow
When a Tier 2 affiliate makes a sale:
- Tier 2 affiliate earns their standard commission
- Tier 1 parent earns an additional Tier 2 commission
- Both commissions are calculated and paid separately
Setup Guide
Note: Multi-Tier commissions are available on Pro and Business plans.
1Enable Multi-Tier System
- Go to Project Settings → Commissions tab
- Find the Multi-Tier Commission System section
- Toggle "Enable Multi-Tier Commission System"
2Configure Tier 2 Settings
Commission Type
Choose between:
- ✓ Percentage (%): Fixed percentage of sale
- ✓ Fixed amount ($): Fixed dollar amount per sale
Commission Value
Set the rate Tier 1 affiliates earn from Tier 2 sales
Typical range: 5-15% of sale value
Duration
- ✓ Lifetime: Tier 1 earns from all future Tier 2 sales
- ✓ Period: Tier 1 earns for a specific number of months
3Example Configuration
Sample Setup
Standard Commission: 30% lifetime
Tier 2 Commission: 10% lifetime
Result when Tier 2 affiliate sells $100:
- Tier 2 affiliate earns: $30 (standard commission)
- Tier 1 parent earns: $10 (additional tier 2 commission)
Setting Up Affiliate Hierarchies
Admin-Managed System: The Multi-Tier system uses admin-managed parent-child relationships rather than automatic recruitment links.
Process for Adding Tier 2 Affiliates
- Go to your Project Dashboard → Affiliates section
- Create a new affiliate OR select an existing affiliate
- Use the "Set Parent Affiliate" option to link them to a Tier 1 affiliate
- The system automatically calculates Tier 2 commissions for future sales
Recruitment Options
Manual Process
Have interested affiliates contact you directly for review and approval.
Application Form
Create your own signup form and manually add qualified affiliates to the system.
API Integration
Build your own recruitment system using Refgrow's API for automated processing.
Tracking & Analytics
Admin Dashboard
- Affiliates page: See parent-child relationships
- Multi-tier statistics: Track Tier 2 performance
- Commission breakdown: Separate Tier 1 and Tier 2 earnings
Affiliate Widget
Affiliates can see:
- Their standard referral link
- If Tier 2: Information about their parent affiliate
- If Tier 1 with children: Tier 2 commission earnings
- Multi-tier commission breakdown and statistics
Best Practices
Set Attractive Tier 2 Rates
- Make it worthwhile for top affiliates to recruit
- Typical range: 5-15% of sale value
- Consider your margins when setting rates
Streamline Recruitment
- Create a clear application process for potential affiliates
- Develop criteria for selecting quality Tier 2 partners
- Consider building a custom recruitment form with API integration
Monitor Performance
- Track which Tier 1 affiliates are best recruiters
- Analyze Tier 2 conversion rates
- Adjust commission rates based on performance
Maintain Balance
- Ensure Tier 2 rates don't exceed your profit margins
- Test different rate structures to find optimal balance
- Consider different rates for different products
Common Questions
No, this is a two-tier system. Tier 2 affiliates cannot create Tier 3 levels.
Their Tier 2 affiliates remain active but become independent (no longer generate Tier 2 commissions for the removed parent).
Yes, but changes only apply to new conversions, not existing ones.
Tier 2 commissions are added to the Tier 1 affiliate's earnings and paid through their chosen payment method.
Getting Started
Quick Start Checklist
- Enable the system in your project settings
- Set your Tier 2 commission rates and duration
- Create your affiliate hierarchy by assigning parent-child relationships
- Develop your recruitment process for finding quality Tier 2 affiliates
- Monitor and optimize based on performance data
Pro Tip: The Multi-Tier system provides a powerful way to create affiliate hierarchies and reward your top-performing affiliates for building teams beneath them, all managed through your admin dashboard.
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