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GLOSSARY TERM

Tiered Commission

Tiered structures reward growth: e.g. 25% revshare up to 10 FTDs/month, 30% to 25, 35% beyond, or CPA bumps at volume thresholds.

Design traps

Decide whether the higher tier applies to all volume or only the increment above the threshold — retroactive tiers create month-end FTD-dumping incentives and sandbagging (holding traffic until it clears a threshold). Incremental tiers behave better but are harder to explain. Either way, publish the tier table in the program terms; secret tiers negotiated ad hoc become an administrative swamp and a fairness grievance the moment two affiliates compare notes.

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