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Tiered Commission

A tiered commission is a commission model where payout rates increase as affiliates or IBs reach higher performance thresholds, such as monthly conversion volume or revenue generated.

What it means in practice

Tiered commission structures define multiple payout levels, each tied to a specific performance threshold. As an affiliate or introducing broker hits a higher tier - typically measured by monthly conversions, depositing players, trading volume, or revenue contribution - their commission rate increases accordingly. This creates a built-in incentive for partners to push beyond baseline performance and rewards consistent, high-volume delivery.

The mechanics are straightforward: an operator defines tier boundaries and the corresponding rate for each. For example, Tier 1 might pay $100 CPA for 1-10 conversions per month, Tier 2 pays $130 for 11-30 conversions, and Tier 3 pays $160 for 31 or more. Some programs apply the higher rate retroactively to all conversions once the threshold is reached, while others apply it only to conversions within that tier. This distinction matters significantly to affiliate earnings and should be clearly documented in program terms.

For operators, tiered commissions provide cost control at low volumes while offering competitive rates to top performers. The structure naturally segments partners by output, making it easier to identify and prioritize high-value relationships. The tradeoff is added complexity in reporting and reconciliation - affiliates need transparent, real-time visibility into their current tier status to stay motivated and avoid disputes at payout time.

How Tiered Commission works across industries

See how tiered commission is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.

iGaming

Tiered Commission in iGaming affiliate programs

In iGaming, tiered commissions commonly scale with monthly [FTD](/glossary/ftd) count or [NGR](/glossary/ngr) contribution. An operator might offer three CPA tiers based on depositing player volume, with the top tier reserved for affiliates who consistently deliver 50+ FTDs per month. RevShare tiers can also apply, increasing the revenue share percentage as the affiliate's referred player base generates more NGR.
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Forex

Tiered Commission in Forex partner and IB models

Forex brokers use tiered structures extensively within [introducing broker](/glossary/introducing-broker) programs. Tiers often scale with the aggregate [trading volume](/glossary/trading-volume) of referred clients or the number of funded accounts per month. Higher-tier IBs may receive increased [lot-based](/glossary/lot-based-commission) rebates or improved [spread-based](/glossary/spread-based-commission) commission rates.
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Prop Trading

Tiered Commission in prop trading acquisition flows

Prop trading firms structure tiers around [challenge purchase](/glossary/challenge-purchase) volume. An affiliate driving 10 challenge purchases per month might earn a base CPA, while those driving 50+ unlock a higher rate. Some firms also tier by the average challenge value sold, rewarding affiliates who promote higher-priced evaluation products.
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How Track360 handles this

Track360 supports configurable tiered commission structures with automatic tier progression based on real-time performance data. Affiliates can see their current tier, progress toward the next threshold, and projected earnings directly in the partner portal.

FAQ

Frequently Asked Questions

Common questions about tiered commission, how it works in affiliate programs, and where it shows up across Track360's supported verticals.

Tiered commissions specifically adjust rates based on volume or performance thresholds in a step-based structure. Dynamic commissions are a broader category that can adjust based on any predefined rule, including quality scores, geography, or time-based conditions. Tiered structures are one type of dynamic commission.

Related Terms

Commission & Payouts

Performance Tier

iGamingForexProp Trading
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A performance tier is a structured level within an affiliate program where partners earn progressively higher commissions or additional benefits as they meet defined volume, revenue, or quality thresholds.

Commission & PayoutsRead More →
Commission & Payouts

Dynamic Commission

iGamingForexProp Trading
Read Definition

A dynamic commission is a commission structure that automatically adjusts based on predefined rules such as performance thresholds, volume tiers, traffic quality scores, or time-based conditions.

Commission & PayoutsRead More →
Commission & Payouts

Multi-Tier Commission

iGamingForexProp Trading
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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.

Commission & PayoutsRead More →
Commission & Payouts

RevShare (Revenue Share)

iGamingForexProp Trading
Read Definition

RevShare is a commission model where an affiliate earns an ongoing percentage of the revenue generated by their referred customers, typically calculated on a monthly basis.

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Commission & Payouts

CPA (Cost Per Acquisition)

iGamingForexProp Trading
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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.

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