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Home Case Studies Revolutionizing Affiliate Earnings: A Strategic Shift to Performance-Driven Commission Structure Gen3 Marketing Logo - Light Blue Background By Gen3 Marketing Posted on Feb 2, 2024

Revolutionizing Affiliate Earnings: A Strategic Shift to Performance-Driven Commission Structure 

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Hands typing on a laptop computer. Images of shopping cart icons and dollar signs are superimposed over the photo.

$7,500

Top affiliate’s earnings growing from $2500.

$150

Earnings per order growing from $50.

44.7%

Month-over-Month affiliate commissions.

CHALLENGE

In the competitive LLC & Business Formation sector, our client faced a dilemma. Their top affiliates, under pressure from competitors offering higher rates, demanded increased commissions. This was despite our client already providing competitive commissions and an industry-leading product. The challenge lay in managing these rising demands without corresponding increases in volume or clear value additions to the affiliate program.

THE GEN3 APPROACH

Our team took a collaborative approach to overhaul the existing commission framework. We transitioned from bespoke commissions to a click attribution-based model. This new structure considered two factors: the type of package purchased (Silver, Gold, Platinum) and the affiliate’s position in the sales funnel (low, mid, high). The revised commissions were as follows:

By package: Silver – $25, Gold – $50, Platinum – $75.

By clickstream position: Last touch – $25, Middle touch – $50, First touch – $75.

THE RESULTS

  • Affiliates, who previously earned a flat rate of $50 per order, could now earn up to $150 per order, incentivizing them to promote higher-tier packages.
  • A top affiliate’s earnings skyrocketed from $2,500 to approximately $7,500 monthly under the new model.
  • Month-over-Month affiliate commissions soared by 44.7%.
  • For advertisers, this new model provided a clearer insight into each affiliate’s value, distinguishing those driving higher-tier package sales and identifying funnel-specific performance.

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