# Multi-Tier Commission System

> Source: https://refgrow.com/docs/multi-tier

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:

1.  **Tier 2 affiliate** earns their standard commission
2.  **Tier 1 parent** earns an additional Tier 2 commission
3.  Both commissions are calculated and paid separately

## Setup Guide

**Note:** Multi-Tier commissions are available on Pro and Business plans.

### Step 1: Enable Multi-Tier System

1.  Go to **Project Settings** → **Commissions** tab
2.  Find the **Multi-Tier Commission System** section
3.  Toggle **"Enable Multi-Tier Commission System"**

### Step 2: Configure 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

### Step 3: Example Configuration

```
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

1.  Go to your **Project Dashboard** → **Affiliates** section
2.  Create a new affiliate OR select an existing affiliate
3.  Use the "Set Parent Affiliate" option to link them to a Tier 1 affiliate
4.  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

### Can Tier 2 affiliates recruit their own sub-affiliates?

No, this is a two-tier system. Tier 2 affiliates cannot create Tier 3 levels.

### What happens if a Tier 1 affiliate is removed?

Their Tier 2 affiliates remain active but become independent (no longer generate Tier 2 commissions for the removed parent).

### Can I change Tier 2 commission rates after setup?

Yes, but changes only apply to new conversions, not existing ones.

### How are Tier 2 commissions paid out?

Tier 2 commissions are added to the Tier 1 affiliate's earnings and paid through their chosen payment method.

## Quick Start Checklist

1.  **Enable the system** in your project settings
2.  **Set your Tier 2 commission rates** and duration
3.  **Create your affiliate hierarchy** by assigning parent-child relationships
4.  **Develop your recruitment process** for finding quality Tier 2 affiliates
5.  **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.