What it means
In affiliate marketing, multi-tier commission a commission structure with multiple levels where affiliates earn from their direct referrals (tier 1) and from referrals made by affiliates they recruited (tier 2+).
Why it matters
Whether you're launching a new affiliate program or scaling an existing one, understanding multi-tier commission helps you make better decisions about commission structures, partner recruitment, and growth tactics. Most SaaS founders run into this concept early and benefit from a clear mental model before they start building.
See also
Related terms in the affiliate marketing glossary that connect to multi-tier commission:
- Multi-Touch Attribution -- An attribution model that distributes credit across multiple touchpoints in the customer journey rather than assignin...
- One-Time Commission -- A commission paid only once per referred customer, typically when the first purchase is made. Contrasts with recurrin...
- Payout -- The transfer of earned commissions to an affiliate's account. Payouts are typically processed on a schedule (weekly, ...