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Commission tier

Definition

A structure where the commission rate increases as a publisher hits defined sales or volume thresholds within a set period. Tiers reward top-performing publishers with higher rates once they prove volume, rather than paying every publisher the same flat percentage regardless of output.

How does Commission tier work in practice?

A homewares advertiser pays 5 percent commission up to 50 sales a month, then lifts the rate to 7 percent for every sale after that threshold, rewarding its highest-volume publisher automatically.

Do commission tiers reset every month or accumulate over the program's lifetime?

It depends on the program terms, but most tiers reset each calendar month or quarter, based on sales volume in that period alone. Some longer-running partnerships negotiate rolling or annual tiers instead, so publishers should confirm the reset period directly in their program terms document.

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