Intense competition in the LLC & Business Formation vertical led our client’s top affiliates to consistently demand higher commissions, as competitors sought to lure them with higher rates. Despite our client offering a highly competitive commission rate and the industry’s best product, both new and existing affiliates sought increased commissions without achieving expected volume levels or demonstrating the actual value they could bring to the affiliate program.
Our teams worked in tandem to phase out bespoke commissions and develop a click attribution-based commission model that credited affiliates based on two factors: the type of package (Silver, Gold, Platinum) purchased and the clickstream position in the sales funnel (low, mid, high) enabling higher commission earnings.
Commission based on the package:
Silver: $25, Gold: $50, Platinum: $75
Commission clickstream position:
Last touch: $25, Middle touch: $50, First touch: $75
The new commission structure presented an opportunity for affiliates who had previously earned a flat commission of $50 per order to now earn a commission of up to $150 per order, depending on the funnel position and the package purchased.
This structure also motivated them to push the Platinum package to their audience, as it allowed them to earn a higher commission. One of our top affiliates, who had been averaging $2,500 in monthly commissions with the old structure, began earning approximately $7,500 in monthly commissions with the new commission structure. Overall, affiliate commissions increased by 44.7% MoM.
On the advertiser’s side, the new structure allowed for a clearer assessment of the value each affiliate brought to the program. It facilitated the identification of whether an affiliate was driving more Platinum orders compared to Silver or more medium-funnel orders compared to low-funnel.
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