A tiered commission is a special compensation model in affiliate marketing where the commission amount increases step-by-step based on a publisher's success. The more sales or actions a publisher generates, the higher the commission rate for each subsequent level. This system motivates publishers to continuously improve their performance while fostering long-term collaboration.

Tiered commissions are often used to reward high-performing publishers and create incentives to boost activity. Depending on the agreed commission plan, different percentages or amounts can be scaled according to revenue generated or number of referrals. This flexible approach adapts to the dynamics of the advertiser program, creating a win-win situation.

This model offers transparency and fair pay, as rising success is directly rewarded with increased earnings. The clear structure of tiered commissions simplifies planning and control for both publishers and advertisers. Overall, tiered commissions drive motivating and sustainable performance growth in affiliate marketing.