What Are Commission-Based Rewards?

With Referral Factory, you can automatically pay out a fixed or a commission-based reward for successful referrals. For commission-based rewards, simply set the percentage and deal/spend value and your reward will be calculated for you!

Are you looking for affiliate or referral program software that does automated rewards and commissions? Look no further than Referral Factory!

If you already have a Referral Factory account, then keep reading to learn about commission-based rewards πŸ‘‡


In this guide πŸ‘‡

1. Understanding Commission-Based Rewards

2. Setting Up Commission-Based Rewards in Referral Factory

2.1. How To Add A Commission-Based Reward

2.2. How To Issue A Commission-Based Reward

 

Would you prefer to learn more about Referral Factory rewards in general? You'll find a full breakdown here: πŸ“– Rewarding with Referral Factory: A Full Guide  πŸ“–

 


1. Understanding Commission-Based Rewards

 

In the realm of referral and affiliate marketing, a commission-based reward system serves as a powerful incentive mechanism to drive people to spread the word about your business! Simply put, commission-based rewards allow you to easily give referrers a percentage of each successful sale, deal, or conversion generated through their unique referral link. This means that when someone they've referred makes a purchase or completes a desired action, such as signing up for a service (what we call a "qualified referral"), that referrer or affiliate is rewarded with a commission. 

With Referral Factory, you can effortlessly manage your commission-based rewards. The platform can automatically calculate the commission value for you, taking into account the qualification rules, commission percentage, and deal/sale value that you set. 

You can set up commission-based rewards to issue once-off (as a Standard Reward) or at recurring intervals (as a Recurring Reward).

Commission-based rewards can be simply tracked (Issue Your Own) or can be automatically issued via Tremendous, Zapier, Webhooks, or Stripe.


 

2. Setting Up Commission-Based Rewards in Referral Factory

 

You Will Need:

  • Any Referral Factory plan
  • A draft or published referral campaign. 

 

2.1. How To Add A Commission-Based Reward

 

β†’ In the left-hand navigation bar of your Referral Factory dashboard, click the Rewards tab.
β†’ Click Add New Reward.

β†’ Name the reward. This is used for internal management purposes and won’t be shown to your users.
β†’ Choose who should be rewarded: the Person Referring or the Person Invited.

πŸ’‘ If you want to reward both in the same campaign, you should create multiple rewards as part of the same campaign.

β†’ Connect your campaign.

❗️ Rewards are linked to campaigns. If you have multiple campaigns and want to issue rewards in each of them, you will need to create multiple rewards. 

β†’ Click Next

β†’ Select how you want to issue the reward. 
 

πŸ“Œ You can issue commission-based rewards through Tremendous, Webhooks, Stripe, Zapier or you can simply track who needs a reward and "Issue Your Own". Each option has its own flow, so please consult the relevant help guides for each for more information:

πŸ‘‰ Rewarding with Referral Factory and Tremendous

πŸ‘‰ How To Issue Your Own Rewards (Reward Tracking Only)

πŸ‘‰ Rewarding with Referral Factory and Webhooks

πŸ‘‰ Rewarding with Referral Factory and Zapier

πŸ‘‰ Rewarding with Referral Factory and Stripe

β†’ Click Next.
β†’ Select whether you want to issue a Standard or a Recurring Reward.

πŸ’‘ Standard rewards typically operate on an ongoing basis with no changes to the reward value as participants accumulate more and more referrals. Recurring rewards allow you to pay out the reward at regular intervals like weekly, monthly, or yearly.

❗️ At present, it is not possible to issue commission-based rewards as milestone rewards

 
 
πŸ‘‰ To issue a Standard Reward
β†’ Select whether a reward should be triggered when a referral is invited or when a referral is qualified (successful or converted).

πŸ’‘ Want to reward when the referral is invited AND when that referral converts? Set up multiple rewards within the same campaign. 

β†’ Enter the commission value as a percentage
β†’ Optionally, enter a maximum value for the reward. This will cap your reward value even if the percentage of the total deal or spend is a higher amount. 
β†’ Set whether you would like to limit the number of rewards that can be issued to any single user.
β†’ Click Next.
 

πŸ‘‰ To issue a Recurring Reward

β†’ Select whether a reward should be triggered when a referral is invited or when a referral is qualified (successful or converted).

πŸ’‘ Want to reward when the referral is invited AND when that referral converts? Set up multiple rewards within the same campaign. 

β†’ Optionally, enter the currency
β†’ Enter the commission value as a percentage
β†’ Optionally, enter a maximum value for the reward. This will cap your reward value even if the percentage of the total deal or spend is a higher amount.
β†’ Set the reward period, this is the interval at which the recurring reward should be issued. You can set the interval to be weekly, monthly, quarterly, annually, or at a custom interval of your choice. 
β†’ If you would like to limit the number of intervals that recur, use the dropdown menu to place a cap on the recurring reward. 
β†’ Finally, select how unqualified referrals should be treated. 
β†’ Click Next.
 
 
β†’ At this stage, you have the option to enable auto-issue. By default, Referral Factory will NOT automatically issue your rewards. However, you can toggle the switch to allow rewards to be issued as soon as they become due. You can also switch auto-issue on and off from inside the Rewards tab. 
β†’ Click β€˜Activate’.
 
β†’ Success!

 

 

2.2. How To Issue A Commission-Based Reward

 

β†’ In the left-hand navigation bar of your Referral Factory dashboard, click the Rewards tab.
β†’ Select β€˜Rewards Due’.
β†’ A list of due rewards will appear in the table below.
β†’ Click on the checkbox for the reward you want to issue.

β†’ In the pop-up that appears, enter the total spend or total deal value of the newly referred customer. Your reward total will be calculated automatically. 

β†’ Click Add To Cart

β†’ Click Issue Rewards.

β†’ The cart will show the type of reward, reward name, campaign name, number of rewards due, and the total value of the rewards. 

β†’ Click Authorize or Mark As Issued.


❗️Clicking β€˜Authorize’ will automatically send the rewards via your chosen issuer. If you have Tremendous, Stripe, or Zapier connected, this may have financial implications so please issue rewards carefully. 

πŸ“Œ You cannot add different types of rewards to the same cart. If you want to issue Tremendous rewards and β€˜Issue Your Own’ rewards, you must add these to separate carts.

 

πŸ“Œ If you would like to issue rewards automatically instead of having to manually add them to your cart each time, toggle on auto-issue. 

β†’ Success!

 


 

Would you prefer to learn more about Referral Factory rewards in general? You'll find a full breakdown here: πŸ“– Rewarding with Referral Factory: A Full Guide  πŸ“–