question about tier 2 payouts

[localdirect]

Just after some clarity on how tier two payments work. An example would serve best:

Lets say i have a $100 product with tier 1 commission set at 20% and tier 2 set at 10%

Person A is an affiliate who subsequently introduces person B as an affiliate.

So, when person B makes a sale, which of these 3 outcomes will happen:

1. Person B makes $20 and person A makes $10 (i.e. 10% of total product cost) and I retain $70

2. Person B makes $20 and person A makes $2 (i.e. 10% of person A’s commission) and I retain $78

3. Person B makes $20 and person A makes $8 (i.e. 10% of total product price after deduction of tier 1 commission) and I’m left with $72

Thanks in advance

[admin]

Hi, I like questions with examples

It will do #1. Let me know if that answers your question.

[localdirect]

Great, that’s the one I’d expected and also the easiest one to explain to potential affiliates

Thanks for the clarification

[orenedree]

wow awesome examples!

Is there a possibility to add the #2 option to be available too?

[wzp]

That requires a redesign of the plugin; because it requires an additional calculation be performed for each tier that a sale occurs under, instead of a single calculation based on the sale price.

Also, depending upon your legal jurisdiction; it may require you to make a disclosure of what the first tier commission is, to the second tier affiliate.

[Author]

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