Multi-Tier Commission
A commission structure where affiliates earn from their own referrals and from referrals made by affiliates they recruited, creating layered earning opportunities across partner tiers.
What it means in practice
Multi-tier commission structures allow affiliates to earn not only from the customers they refer directly, but also from conversions generated by sub-affiliates they recruit into the program. In a two-tier model, an affiliate earns their standard commission on tier-1 referrals plus a smaller percentage on conversions driven by their tier-2 partners. Some programs extend this to three or more tiers, though complexity increases with each additional level.
This structure is different from multi-level marketing (MLM). In affiliate programs, the commission tiers are funded by the operator as a cost of acquisition, not by participants paying into the system. The tier-2 (or tier-3) commission is an additional incentive the operator pays to reward affiliates who help grow the partner network. The referred customer experience and pricing remain unchanged regardless of how many commission tiers exist.
Multi-tier commissions are a powerful tool for scaling affiliate programs because they turn existing partners into recruiters. Affiliates with large audiences or industry connections are motivated to bring new partners into the program when they earn an ongoing percentage of those partners' performance. For operators, this reduces the cost and effort of affiliate recruitment. The tradeoff is increased complexity in commission calculation, reporting, and payout processing.
How Multi-Tier Commission works across industries
See how multi-tier commission is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 supports multi-tier commission structures with configurable tier depths, automatic sub-affiliate attribution, and transparent reporting that shows earnings at each level of the partner hierarchy.
Frequently Asked Questions
Common questions about multi-tier commission, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
Two tiers are the most common setup. The affiliate earns their standard commission on direct referrals (tier 1) and a smaller percentage on conversions from partners they recruited (tier 2). Some programs, particularly in Forex IB structures, use three or more tiers, though each additional level adds complexity to calculation and reporting.
Related Terms
Sub-Affiliate
An affiliate recruited by another affiliate into a program, where the recruiting affiliate earns a percentage of the sub-affiliate commissions as an override.
Sub-IB
A Sub-IB is an introducing broker recruited by another IB (the master IB) rather than directly by the broker. Sub-IBs operate under a multi-tier structure where commissions cascade from the broker through the master IB layer.
Master IB
A Master IB is an introducing broker who recruits and manages a network of Sub-IBs beneath them. The Master IB earns override commissions on the trading volume generated by their downstream partners in addition to commissions on their own direct referrals.
Hybrid Commission
Hybrid commission combines two payout models, most commonly CPA and RevShare, in a single affiliate deal so operators can reward both conversion volume and long-term customer value.
CPA (Cost Per Acquisition)
CPA is a commission model where an affiliate earns a fixed payment for each qualifying action, such as a deposit, registration, or purchase, that a referred user completes.
Sub-Affiliate vs Multi-Tier Commission
Sub-affiliate programs pay a commission on recruits' earnings, while multi-tier commission extends this across multiple referral levels.
Continue Learning
Free structured courses that cover this topic and more.
Setting Up an iGaming Affiliate Program
iGaming affiliate program setup. GGR vs. NGR, player tracking, MGA/UKGC/Curacao compliance, and how to scale.
Forex IB Program Management
Lot-based and symbol-based commission structures, multi-level IB hierarchies, MT4/MT5 integration, and per-partner deal terms built for brokerages. From onboarding to payout.
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