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Creating a commission structure that is mutually beneficial to both you and your affiliates is a critical component of growing through partners and developing strong relationships. In fact, one of the first questions you will hear when recruiting affiliates is “How much will I get paid?” Unfortunately, as Cindy and I can both attest, answering that question is not as easy or as straightforward as it seems.
There are hundreds of difference ways you can structure affiliate commissions within Infusionsoft. In all of the excitement of creating the perfect program for your business, it’s easy to get overwhelmed or confused by your options. My recommendation is to start slowly by building a basic structure. Once you have a solid foundation in place, you can add advanced features to your commission structure. There are four primary things you should consider when setting up your affiliate program. Think of them as your foundation. Payout Type (Lead/Sale) – Will you pay commissions per lead or sale? Payout Type (Amount/Percentage) – Will you pay a fixed amount for commission or a percentage? Payout Type (One Time / Recurring) – Will you pay a lump sum or recurring commission? Payout Timing (Right Away / Upon Receipt)
Infusionsoft allows you to pay affiliates for generating leads, closing deals, or both.
Infusionsoft allow you to pay affiliates a fixed amount or a percentage of the product amount. This is pretty straight-forward. You can either pay affiliates a flat fee for their referral (ex. $10) or you can pay them a percentage of the sale amount (ex. 10%).
How many of you offer continuity or subscription products? An excellent way to compensate affiliates for subscription referrals is to pay recurring commission. You can also leverage our recurring commission functionality to create a program that pays out over several months. You can set the number of cycles that you pay out for or pay forever (for the lifetime of the customer).
Infusionsoft allows you to manage risk by allows you to decide when to credit affiliates for referrals. You can credit affiliates right away or wait until you actually collect the funds from your client.
Alex recruits Bryan into your affiliate program, which makes Alex the parent affiliate to Bryan. You create a program that pays the following commissions: Level 2 (Alex) = 10% Level 1 (Bryan) = 25% When Bryan brings in a sale for $100, he will be paid $25. Since Alex originally recruited Bryan, he will be paid $10. If Alex makes a sale directly, he will be paid $25 and Bryan will be paid nothing. It is important to note that these Level commissions are paid in addition to each other and not by subtraction. The total commissions paid for the order is 35%.
Alex recruits Bryan and then Bryan recruits Cassie. This makes Alex the “MASTER AFFILIATE,” Bryan the “SUB-MASTER,” and Cassie the AFFILIATE. You create a program that pays the following commissions: Level 3 (Alex) = 5% Level 2 (Bryan) = 10% Level 1 (Cassie) = 25% When Cassie brings in a sale for $100, she will earn $25, Bryan will earn $10, and Alex will earn $5. If Bryan brings in a sale for $100, he will be paid $25 and Ales will earn $10. If Alex refers a deal, he will earn $25. Once again, these commissions are paid in addition to each other so the total commissions paid for the order is 40%.
The world is full of exceptions, so Infusionsoft allows you to create exceptions in your affiliate program. We call them commission overrides. You can use overrides to: Pay more or less commission for a particular product. Pay higher or lower commissions to a particular affiliate. Exclude products or subscriptions from commissions. Scenario 1 You have a general affiliate program that pays 10% on any product, but you want to pay more for three products (A, B and C). Product A = 30% Product B = 15% Product C = 5% Simply create the override in the affiliate program to pay the commissions shown above. Scenario 2 You pay all affiliate 10% but you want to set up a special program for a particular affiliate. You can create an override in the affiliate record, so as not to affect all other affiliates. Affiliate Override Commissions will always have a higher priority than any program that the affiliate is enrolled in so you can always adjust a particular affiliate's settings to be however you want, regardless of the program they are enrolled in.