Creating a new Commission Rule
To create a new Commission Rule, please click on Commission Rules from left menu, and then towards the top right corner of the page, click on 'Create New' button.
You will see a page like this:
Let's explore each and every option on this page:
Title of the Commission Rule:
The title or name of the Commission Rule is solely for your reference. It serves as a way for you to distinguish between your various Commission Rules when you have multiple rules in place. Additionally, this name is essential for contacting us us if you require help with a specific Commission Rule that you have created. For instance, you can easily request support by referring to the specific Commission Rule name. Hence, assigning a meaningful name to your Commission Rules is recommended.
Commission Type:
In Affilo, you will find an extensive range of Commission Rule types to cater to all your needs. These include:
Percent of Sale
Flat rate per order
Flat rate per each product sold
Performance based commissions
Product level commissions (based on SKUs)
Product level commissions (Product name search)
Collections based commissions
Percent of Sale: These commission types are the most common commission types. This commission rule type calculates the affiliate's commission as a percentage of the total sale amount generated through their referral link. For example, if the commission rate is set at 10% and a sale worth $100 is made, the affiliate would earn $10.
Flat rate per order: With this rule, affiliates earn a fixed amount for each order placed through their referral link, regardless of the total order value. For instance, if the flat rate commission is $5 per order, the affiliate would receive $5 for every referred order regardless of the order total.
Flat rate per each product sold: This commission type awards affiliates a set amount for each product they successfully sell through their referral link. For example, if the commission rate is $2 per product sold and the affiliate sells 10 products, they would earn $20 in commissions. The commission in this commission type remains consistent regardless of whether the 10 products are sold in separate orders or within a single order. Affiliates are entitled to a commission for each product sold, irrespective of the number of orders placed.
Performance based commissions: Performance based commissions also knowns as tiered commissions present an excellent incentive for affiliates to increase their earnings by selling more. For instance, affiliates may receive a 5% commission on sales up to $1,000 and a 10% commission on sales between $1,001 and $2,000. As sales surpass $2,001, affiliates can earn $15 per referral and escalate their earnings further with each tier. This commission structure serves as a powerful motivator, encouraging affiliates to strive for greater rewards and consistently improve their performance. You have the flexibility to customize and set up tiers, along with corresponding incentives, based on your preferences.
Product level commissions (based on SKUs): This commission rule assigns different commission rates to specific product SKUs, allowing for customized commission structures based on individual product performance. Affiliates earn varying commissions depending on the SKU linked to the sale. This commission type also enables you to offer higher commissions on products with higher profit margins and lower commissions on products with lower profit margins. Additionally, this commission model gives you an option to set increased commissions for inventory that you aim to sell quickly. You can create your product SKUs in Shopify and then input them into Affilo by typing or pasting them in comma-separated format. Alternatively, you have the option to bulk copy and paste your comma-separated SKUs into the designated fields. Just be sure to press the "Enter" key on your keyboard to save and register these SKUs after inputting or pasting them into the form fields.
Product level commissions (Product name search): This is essentially the same as Product level commissions based on SKUs, but it eliminates the necessity of creating or utilizing SKUs to allocate commissions to your products. Instead, you can easily locate your products in the dropdown list by typing in the initial letters of their names. The products will then appear in the list for you to select from.
Collections based commissions: Affiliates earn commissions for promoting and selling products within specific collections or categories created in your Shopify store. This type of commission rule incentivizes affiliates to focus on driving sales within targeted product collections, leading to more targeted and effective marketing efforts. This feature simplifies your task of organization by enabling you to collectively apply commission rules to various products within a collection, rather than having to assign them individually by SKUs or product names.
Approve commission after:
This setting governs when affiliate commissions are paid out after a sale is completed. This setting is also known as commission approval. This feature in the app is useful for handling the commissions of refunded or cancelled orders. It is advisable to align the commission approval timeframe with your refund policy. For instance, if you offer a 14-day return policy, it is recommended to set the commission approval period to 14 days as well. This synchronization ensures that commissions are not paid out for orders that are later refunded or canceled. Once an order is cancelled in Shopify, the associated commission for that order also gets cancelled in Affilo as long as it is in the holding period. After the holding period passes, the commission becomes payable. If the order is cancelled after the commissions become payable, the commissions do not get cancelled automatically. In that case, the commission needs to be cancelled manually provided that it is not paid out already.
Cookie Days:
When a customer clicks on a referral link, a cookie is stored in their browser to track their order. The "cookie days" setting determines for how long this cookie should be monitored after the link is clicked. For instance, if a customer clicks on a referral link today, then returns to make a purchase two weeks later, the question arises: should the affiliate receive a commission for this order, considering they originally directed the customer to the website? The cookie days setting addresses this issue. In the given example, with a cookie days setting of 30 days, the affiliate would receive the commission since the purchase falls within the 30-day window. However, with a cookie days setting of 1 day, the affiliate would not receive the commission. A cookie day of 1 essentially requires the customer to make the purchase on the same day as clicking the link; any purchase made the following day would not qualify the affiliate for a commission. In essence, cookie days determine the timeframe within which a customer must make a purchase after clicking on a referral link for the affiliate to be eligible for a commission. Tip: While the market standard is typically 30 days, feel free to type in the number of days according to your business requirements.
Terms & Conditions:
Terms & Conditions set forth the guidelines for your affiliate partnerships. If you have an existing version of your terms and conditions, you can simply paste them here. Alternatively, you can conveniently generate terms and conditions using the provided template by clicking on the pink 'Create from template' button. Feel free to personalize this template according to your specific requirements. In this template, placeholder entries enclosed in brackets are included for your convenience - be sure to substitute them with your own information.
Advanced Options:
Commission Calculation Logic Options in Affilo
The commission calculation logic settings in Affilo allow you to determine how affiliate commissions are calculated. Below are the details for each available option:
Excluding Shipping and Excluding Taxes: With this setting, commissions are calculated based on the total order value excluding both shipping fees and taxes.
Including Shipping and Including Taxes: This option calculates commissions based on the total order value, inclusive of both shipping fees and taxes.
Including Shipping, but Excluding Taxes: Commissions are calculated based on the total order value including shipping costs, but excluding taxes.
Excluding Shipping, but Including Taxes: This setting calculates commissions based on the total order value, excluding shipping charges but including taxes.
Recurring commissions:
Additionally, you have the option to enable recurring commissions for affiliates based on a customer's lifetime orders.
Will Affiliates Receive Commission on Customer's Lifetime Orders?
No: Choosing this setting means affiliates will not receive commissions on subsequent or recurring orders made by the same customer. With this setting selected, affiliates will get commissions for only first orders by each customer.
Yes: Selecting this option enables affiliates to earn commissions on all future orders made by the same customer, allowing for recurring commissions over the customer's lifetime.
Once you have finalized the settings for the Commission Rule, be sure to click on the 'Create' button to generate your Commission Rule. Once the Commission Rule is created, it is ready to be assigned to any signup page or to any affiliate.
Please note that once a Commission Rule has been created, its settings cannot be altered at a later time. If adjustments are required, we recommend either duplicating the existing rule and adjusting the settings as needed or creating a new Commission Rule altogether. Modifying the settings or values of an existing Commission Rule may disrupt the accurate tracking of orders.
In conclusion, commission rules are a fundamental aspect of affiliate marketing software that plays a significant role in shaping the success of an affiliate program. By establishing clear and fair rules, businesses can effectively motivate and reward their affiliates while achieving their marketing objectives.
Misc. helping information related to Commission Rules:
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