Q: Did switching from a flat rate to tiers actually move revenue, or just complicate things?
For a subscription tool I managed, here's the before/after. We ran a flat 20% lifetime commission and revenue from partners was flat for three quarters.
What we changed:
— Set base at 15%, then 25% for partners driving 10+ sales/month, 35% for 30+
— Kept the bonus tier recalculated monthly, not lifetime
— Grandfathered existing top partners at 30% so nobody felt demoted
Result over four months: total partner revenue up 41%, and the number of partners hitting 10+ sales doubled from 14 to 29. The base-rate drop barely cost us anything because 80% of volume came from people who jumped into higher tiers.
The caveat: tiers only work if you have enough mid-tier partners to motivate. With under ~20 active partners, a flat rate is cleaner and the math of tiers isn't worth the support load.
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Program Desk
@ProgramDesk
Q: Did switching from a flat rate to tiers actually move revenue, or just complicate things?
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