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In a multi-tier affiliate program or multilevel referral, your affiliates earn commissions on the sales they make as well as on the sales generated by people they refer to your affiliate program. For example, say Mike is your affiliate and he refers to Jenny for your affiliate program. Now, someone buys your product via Jenny’s affiliate link. So both Jenny and Mike are eligible for a commission.

This method of earning commission has proven to be one of the most useful ways for delivering long-term results.

Pabbly's Multi-Tier Affiliate Commission System lets you set the number of Tiers by entering the number of tiers that you want to set up for your Affiliate program. Once the number of tiers is defined, you can then set the commission rule for multi-tier affiliates either for first sale or recurring sales as well. The commission rule for multi-tier will always be in a percentage format. The commission for each tier will always be calculated on the purchase order total.

At the Affiliate portal, a separate section called "Multi-Tier Affiliates" will be introduced. Under this section, an affiliate sign-up URL is available for sub-affiliate sign-ups. The affiliate, who wants to refer another person to be the sub-affiliate for your affiliate program, can share this Affiliate sign-up URL available at his Affiliate portal under this section.

Also, affiliates will be able to see the data such as the total commission he earned from different tiered commissions, the commission tier levels, and the total number of commissions. Under the "Commission" section also, the affiliate can distinguish between the direct affiliate commission and commission through sub-affiliate. Refer to the image attached below.

Let's understand this with an example. Suppose you have set a 3 tier affiliate commission rule as follows -
1st tier commission: 20%
2nd tier commission: 10%
3rd tier commission: 5%
Say, for example, Andre is an affiliate. Andre refers John to be an affiliate too. And John refers Kate to be an affiliate. Now Kate bought a user who buys the product.
In the normal scenario, Kate will receive a commission for referring the sale. But, in the Tier affiliate model, Kate still receives the commission but John and Andre also receive a small commission since John referred Kate and Andre originally referred John to your affiliate program.
Hence, since Kate bought the sale, she will receive the Tier-1 commission(20%), John will receive the Tier-2 commission (10%) and Andre will receive the Tier-3 commission(5%).

NOTE: Any Affiliate who bought the direct sale would get the tier-1 commission and the rest will get the lower-tiered commissions accordingly.


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