Affiliate Marketing: Setting Commission Rates and Groups

With Commission Groups, you can establish different groups for your store's affiliate program, each with separate commission rates. When a referral order is generated, the commission an affiliate can receive is calculated based on their current group as defined in your commission group settings.

You have the option to manually adjust an affiliate's commission group or activate Auto tier commission to upgrade them to a group with better terms. When an affiliate reaches the tier threshold you've established, the system will automatically adjust their commission group.

Setting Up Commission Groups

When you start with Affiliate Marketing, your affiliate program includes a basic commission group known as the 'Default Affiliate Group.' The commission rate for this group corresponds to the settings you established in the starter's guide. All approved affiliates are initially assigned to this basic group, which cannot be deleted. However, you have the flexibility to adjust their commission groups at a later stage.

Furthermore, you have the option to create additional commission groups, which can be deleted if necessary.

Managing Commission Groups

1. In Affiliate Marketing, navigate to Coupons & Rewards > Basic commission tab to access all commission groups within your store.

   

2. In the commission groups list, you will find details such as the group name, basic commission rate, the count of products with specified commissions in each group, and the number of affiliates in each group.

3. Click on the Edit button to access the group details and settings.

4. Additionally, if you click on the count of the affiliates under the Total affiliates column, the system will redirect you to the Affiliate management page, where you can view specific members.

   

   

Steps to Create Commission Groups

1. Go to Coupons & Rewards > Basic commission and click the + Add new button above the group list.

   

2. Enter a custom name for your group in the Group name field. You can modify the name later.

   Note: Only you and your store staff will see the group name. Affiliates won't have access to this.

3. Under the Basic commission type field, specify the commission type and specific commission rate or amount for affiliates in this group. The basic commission rate applies to all store products. If no special product commission rate is set for a product, the basic commission rate will be used for referral orders.

4. Under Special product commission, you can assign different commission rates to specific products in your store. When customers purchase these products through a referral link, the commission will be based on the special product commission instead of the basic commission. To promote specific products, you can set a special product commission rate to encourage affiliates to recommend them more.

5. After reviewing and confirming the information of the group, click Create.

   

Steps to Modify Commission Groups

1. You can modify the information of commission groups at any time. In the Basic commission tab, click on the Edit button of any group.

2. Except for the Basic commission type, which can’t be modified, you can change any other details within the group, such as the Group name, commission rate, commission fee amount, and Special product commission.

3. Click Update.

   

Setting Commissions Based on Sales Relation Binding Time

When you set the sales relationship to Bind after account registration, a new module will appear in each group: Set commissions based on sales relation binding time.

Under this sales relationship, only customers who have a binding relationship with an affiliate can generate a commission for the affiliate. You can set a special commission rate for affiliates, where their basic commission rate is calculated based on the time when customers are bound to the affiliates.

Steps to Set Commissions Based on Sales Relation Binding Time:

1. Enable Set commissions based on sales relation binding time in any commission fee group.

2. You can set commission rates based on the binding time of the customer relationship.

• • The default first tier is once the sales relationship is bound, and the commission rate matches the basic commission rate set for the group.
  • You can add tiers to set a customer relationship binding time of "x" years, with a commission rate of "x%".
  • Up to five tiers can be added, and you can delete any tiers you add. The default first tier can't be deleted.Example:
    • If your settings are:
      • Once the customer relationship is bound, the commission rate is 5%.
      • When the customer relationship has been bound for two years, the commission rate is 10%.
    • The commission rates for customers bound to affiliates: Customer A's relationship with Affiliate 1 started on September 1, 2022:
      • From September 1, 2022, to September 1, 2024, each order placed by Customer A in the store brings a 5% commission rate to Affiliate 1.
      • Starting from September 1, 2024, each order placed by Customer A in the store brings a 10% commission rate to Affiliate 1.

3. If your group also sets Special product commission, affiliates can receive special product commission when specific products are included in customers' orders. If no special product commissions are set for the items in the orders, affiliates receive basic commissions based on the time of the relationships.

Changing an Affiliate's Commission Group

You can manually adjust the commission group for an affiliate. Once you make adjustments, affiliates will receive the commission fees associated with their new group.

Steps to change an affiliate’s commission group:

1. In Affiliate Marketing, go to Management > Affiliate management tab and click on any affiliate's profile.

   

2. In the Commission groups block, you can view the current group, basic commission, and special product commission within the group.

3. Click Edit to change the group for the affiliate.

4. Click Edit.

   

After the change, the affiliate will receive the new commission fee corresponding to the new commission group.

Automatic Upgrades for Commission Groups

In addition to manually adjusting groups, you can also enable Auto tier commission. This feature allows the system to automatically adjust an affiliate's group when they meet upgrade conditions. Once enabled, the system will calculate affiliates' latest data every day at midnight. Affiliates who meet the requirements for a higher tier will be moved to a higher commission group, while those who don't meet the current tier's criteria will be moved to a lower group.

Steps to Set up Auto Tier Commission for Commission Groups:

1. In Affiliate Marketing, go to Coupons & Reward > Basic commission and click Auto tier commission above the group list.

   

2. Turn on the Affiliate automatic upgrade toggle.

3. In the Upgrade rule section, select the calculation rule for automatic upgrades:

• • Based on sales: Calculated based on affiliates' cumulative affiliate order value.
  • Based on orders: Calculated based on affiliates' cumulative count of affiliate orders.
  • Based on commission amount: Calculated based on affiliates' cumulative commission fee.

4. Click the + Add a level button below the table to add a tier and set the upgrade conditions:

• • Tier 1 is the default group and can't be modified or deleted. The condition value to reach tier 1 is 0, meaning that once an affiliate's application is approved, he or she will be placed in the default group.
  • In the Group column, you can choose the commission groups corresponding to this tier.
  • In the Condition value column, you can set the condition for affiliates to be upgraded to this tier. For example, an affiliate's cumulative sales need to reach $100.

5. Click Update.

   

How is Commission Calculated in Referral Orders?

When different commission rates are set for products in a referral order, the commission fee for the order is the sum of the commission fees for each product. The commission fee calculation priority for each product is as follows: Special product commission > Basic commission.

Affiliate Marketing calculates commission fees based on the settings for each product.

• Products with special product commissions will have their commission fees calculated based on the special product commission.

• Other products in the order (those without special product commission) will have their commission fees calculated based on the basic commission.

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