Multi-tier commissions

Multi-tier commissions let you pay more than one level of partner for a single sale. An affiliate earns a commission on their own referrals, and also a smaller share on the sales made by partners they brought into the programme. The tool tracks who recruited whom and works out each level's share. FirstPromoter, Post Affiliate Pro, Tapfiliate and Trackdesk are examples of tools with this feature.

The structure gives partners a reason to recruit others, which can grow a programme faster than relying on your own outreach. It suits businesses with a product that is easy to promote and a number of well-connected partners, such as community owners and agencies. It adds complexity, so you may not want it for a first programme. Simple one-level commission is easier to explain, easier to budget and lower risk.

Keep the number of levels small and the rules clear. Some countries have rules about schemes that reward recruiting, so take advice if the payouts depend more on recruiting than on real product sales.

• How many levels are supported, and can each have its own rate?
• Can partners see their own team and earnings, and are they shown only what they should see?
• Can you set different rates by product or partner type?
• Does the tool show the total commission cost per sale, so you can check the margin?