Create A Commission Program

Introduction

A commission program defines the payment structure for a specific group of partners. You can create multiple programs, each with its own set of commissions and, in some cases, products. The referral program commissions apply to every partner enrolled in the commission program; however, you can override the program commissions for individual cases. It's important to plan your referral partner program before you begin. For example, will you offer a fixed dollar commission or a percentage of the sale? Will you offer a multilevel commission structure (MLM?) How will you pay your affiliates?

Commissions are calculated based on the price of the product(s) purchased. They do not factor in any additional fees, such as shipping and/or taxes.

Important Note on Finance Charges
When an order is placed that will payout commissions and the order has a finance charge, the payments will first pay off the finance charge before being applied to the commissions.

To create a commission program, you will need to know the following:

  • Is the partner paid for a lead or a sale?
  • When will they get credited for the sale?
  • How much commission will they get paid?
  • How many cycles they get paid on subscription programs?
  • Which program takes precedence if a partner is enrolled in more than one?
  • Who are the partners?
  • Which product(s) will they promote?
  • How much commission do you want to pay them for these products? Commission is usually based on the partner's lead quality, lead volume, and your profit margin for the products involved. It also involves understanding what kind of commissions motivate a specific type of partner (e.g. a referral partner vs. a strategic partner.)
  • What type of commission method makes sense? A flat rate or a percentage of the product sold?

 

 

Step-by-Step Instructions

  1. Go to CRM > Referral Partners in the main navigation menu.

     

  2. Select Commission Programs from the Referral Partners menu.

     

  3. Click on the Add a Commission Program button to create a new commission program.

     

  4. Enter the Name, Notes and Priority Number: These serve as identifiers so that you and your partners can identify the program and recall summary level details. If your partners have access to their program information in the Referral Partner Center, they will be able to see this information.

    • Name - For internal use only
    • Notes - For internal use only
    • Priority Number - The priority number determines which commission program takes precedence if a partner is enrolled in more than one program. Programs with lower numbers will have higher priorities that those with higher numbers. If a partner is enrolled in a program with a priority number of 1 and a program with a priority number of 15 and if both programs have a commission set up for a product that the partner sells, then the partner will get a commission based on the program with the priority number of 1. In most cases, the programs with a lower priority number pay the higher commissions. If a product commission override is set up for one program, but not the other, then the program with the commission override takes precedence (regardless of priority numbers.)

     

  5. Click on the Save button.

    Note
    There are three ways to define commission payouts (default commissions, product overrides, subscription program overrides). You can choose to use one option or a combination of two or three.

     

  6. Go to the Default Commissions section. These commissions apply to ALL of the products AND subscription programs you sell through Infusionsoft. Create default commissions if you pay the same commission amount or percentage for all or most of your products. This will save you time because you only need to create overrides for the exceptions to the default commissions. The default commissions will also apply to each new product or subscription program you add in the future, unless you edit the program and create an override.

    You can just delete the default commission if you only want to assign one or a few specific products to the commission program and not pay commssion on anything else.

    To make changes to the default commissions, click the Edit button.

     

  7. Go the to Commission Information section

    • Select a Payout Type
      • Credit on Customer Payment: If you choose this option, the partner will not get credit for the sale or receive any commissions until after the customer pays the total amount due. For one time orders, this is the full purchase amount. For subscriptions, this is the amount due on the first billing cycle.
      • Up-Front Credit in Full: If you choose this option, the affiliate will get credit for the sale when the sale is made, even if the customer still has a balance due after the purchase (e.g. they opt for a payment plan.)
    • (Optional: For Subscriptions Only) Pay commissions for: Enter a Cycle limit. This setting gives you the ability to limit the commission on subscription programs to a specific number of billing cycles. The default is 0, meaning the partners are eligible for commissions every time the customer pays a recurring charge related to a subscription program. Change this number if you want the referral partner to receive commission only on the first payment (enter 1) or for a limited number of payment cycles.
    • Enter the payout rules for the lead and/or sale partner for each affiliate level (if you have the multilevel referral partner setting enabled.) Commissions are calculated after a sale is made. The Level 1 commission goes to the partner who makes the sale. The Level 2 commission goes to the partner who recruited the partner who made the sale.
    • Or, just delete the default settings altogether if you only want to pay commissions on a few products.

     

  8. Click the Save button to save your Default Commission.

     

  9. Go to the Product Commissions section to create per-product exceptions for the default commissions, or delete the default commissions and just use the overrides.

    1. Enter the name of a product into the search box and click the name of the product to select it.


       
    2. Click the Create Override button to enter the override commission for this product.


       
    3. Repeat these steps to add commission overrides for additional products.
       
    4. Go to the Subscription Program Commissions section and follow the product commissions instructions above to create overrides for products with subscription plans.