Overview
The Affiliate System lets you create a referral program where your users earn commissions by referring new customers. When a referred customer makes a purchase, the referring affiliate earns a percentage of the order value as commission.
• The system supports:
• Tiered commission rates that reward higher-performing affiliates
• Two commission types — Conversion (new customers) and Retention (returning customers)
• Sub-Affiliate (MLM) engine for multi-level referral chains
• Exception user overrides for custom deals with specific affiliates
How Affiliates Earn Commissions
1. An affiliate shares their unique referral link or coupon code with potential customers.
2. A new customer signs up and makes a purchase using the referral link/coupon.
3. The system automatically calculates the commission based on the affiliate’s current tier and the order amount.
4. The commission is credited to the affiliate’s pending balance.
Example: If an affiliate has a 12% conversion rate and a referred customer places a $500 order, the affiliate earns $60 in commission.
Tier Configuration
Tiers define what commission rate an affiliate earns. There are two types of configurations:
1. Tier Levels
Tier Levels are performance-based brackets that automatically assign commission rates to affiliates based on their metrics. As an affiliate’s performance grows, they progress to higher tiers with better rates.
• Tier Name — A label for the tier (e.g., Beginner, Pro, Expert, VIP)
• Tier Type — The metric used to measure performance
• Value Range — The min/max values that define who falls into this tier
• Commission Rates — The conversion and retention percentages
Example tier structure:
Tier | Value Range | Conversion Rate | Retention Rate |
Beginner | 0 - 9 | 12% | 10% |
Pro | 500 - 1,000 | 15% | 15% |
Expert | 1,000 - 2,000 | 20% | 20% |
VIP | 2,000 - 10,000 | 25% | 25% |
2. Exception Users
Exception Users are individual overrides that assign a custom commission rate to a specific affiliate, regardless of their tier level.
• Special partnerships or influencer deals
• Affiliates with negotiated custom rates
• Temporary promotional rates for specific users
Exception users always take priority over tier levels. If a user has an exception configuration, the tier level is ignored.
Tier Types
The Tier Type determines which metric is used to evaluate an affiliate’s performance and assign them to a tier. All tier levels for your platform must use the same tier type — you cannot mix types.
Tier Type | What It Measures | Example |
Referral Count | Number of unique users referred | Affiliate who referred 15 unique users |
Order Value | Total dollar value of orders from referred users | Referrals generated $5,000 in orders |
Order Count | Total number of orders placed by referred users | Referrals placed 25 orders |
Important: Once you create tier levels with a specific tier type, all tiers must use the same type. To switch types, delete all existing tier levels first.
Commission Rate Types
Each tier configuration includes two commission rates:
Conversion Rate
The commission percentage earned when a new customer makes a purchase through the affiliate’s referral.
Retention Rate
The commission percentage earned when a returning customer makes another purchase through the same affiliate.
Example:
Conversion Rate: 15%, Retention Rate: 10%
Customer buys first time → Affiliate earns 15%
Customer buys again → Affiliate earns 10%
Rates are entered as decimals: 0.12 = 12%, 0.15 = 15%, 0.20 = 20%
Sub-Affiliate Engine (Multi-Level Commissions)
The Sub-Affiliate Engine enables multi-level commissions where both the direct referrer and their uplines earn commissions.
How It Works
• Level 1 = Direct referrer (uses standard Conversion/Retention rates)
• Level 2 = First upline (earns separate sub-affiliate rate)
• Level 3 = Second upline (earns separate sub-affiliate rate)
• Up to Level 5
Commission Calculation Example
Level | Affiliate | Calculation | Commission |
Level 1 | Affiliate A | $1,000 x 10% | $100 |
Level 2 | Affiliate B | $1,000 x 5% | $50 |
Level 3 | Affiliate C | $1,000 x 2% | $20 |
Total commissions paid: $170 from a single $1,000 order.
How Tier Assignment Works
• Exception users are checked first.
• Tier level matching based on performance metrics.
• Automatic progression to higher tiers.
• Highest tier fallback if metrics exceed defined ranges.
Summary
Feature | Description |
Tier Levels | Performance-based commission brackets |
Exception Users | Custom rates for specific affiliates |
Tier Types | Referral Count, Order Value, or Order Count |
Conversion Rate | Commission on new customer purchases |
Retention Rate | Commission on returning customer purchases |
Sub-Affiliate Engine | Multi-level commissions up to 5 levels deep |
Automatic Tier Progression | Affiliates move to higher tiers as they perform |
If you have questions about configuring your affiliate tiers or need help setting up your referral program, reach out to our support team.