Still not clear on affiliate levels and relative…

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by

Robert Rice

I probably need more coffee and some sleep, but this isn’t quite making sense to me in terms of setting it up the way I want (I have groups, affiliate products process tiers, and affiliates rankings installed).

Basic product sells for $100 to buyer (Lisa)

Original Affiliate is Bob. I’m calling him Level 0
He signed up his friend Jim as an affiliate, so he is Level 1
Jim talked Alexis into the affiliate program, and she is Level 2
Lisa is Alexis’ friend and made the purchase.

In this case, Lisa paid cash.
Alexis gets 10% ($10)
Jim gets 5% ($5)
and the original Bob, gets 1% ($1)

I have it set up where affiliates get 10% of their referred sale (level 1), and then down the line, 5% of the friend’s friend (level 2), and 1% at the next level (level 3).

What I’m not sure about is whether or not I should check “relative” next to level. Does that mean that Jim would get 5% ($0.50) of Alexis’ $10 (10%) commission, and Bob gets 1% ($0.10) of the $10?

Basically, I want the affiliate closest to the purchase to get the bigger commission, with commissions rolling up the ladder and diminishing.

Thanks for the help!

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Comments

5 responses to “Still not clear on affiliate levels and relative…”

  1. George Avatar
    George

    You’re welcome 🙂

  2. George Avatar
    George

    Hey Robert,

    Yes correct, if the Original referrer got a 10% commission in ie level 1 the relative commission would be the 5% of the original referrer’s 10% instead of the net sale amount.

    Cheers,
    George

    1. Robert Rice Avatar
      Robert Rice

      Awesome, thank you!

  3. Robert Rice Avatar
    Robert Rice

    Thank you so much for the reply, that helps a lot, especially in terms of the correct terms.

    The main thing I was concerned with was my guess about “relative” rate.

    Just to reiterate a commission is 10%…relative % means the next in line gets 5% of the 10%, not an additional 10% of the original sale amount. Correct?

  4. George Avatar
    George

    Hi Robert,

    Thanks for using our Affiliates marketing tool.

    Your logic is pretty much correct but in your case the -let’s say- terminology is not correct and might lead to misunderstandings regarding the rates set.

    Bob has referred Jim as an affiliate, so Jim is at depth 1.
    Jim referred Alexis into the affiliate program, and Alexis is at depth 2
    Lisa is Alexis’ friend and made the purchase after following Alexis’ link.

    In this case Alexis is the Original referrer,
    Jim is at level 1 and
    Bob is at level 2.

    In tiered commissions depths are “static” while levels are dynamic, check this example.
    Assume that we have again the above affiliates structure but this time Jim refers a new sale.
    In this case Jim is the Original referrer
    Bob is at level 1.
    If none has referred Bob, then there is no commission for level 2.

    Hope this makes sense and if you haven’t already please read this blog post regarding tiers.

    Kind regards,
    George

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