Commission Tier Calculator
Retroactive tiers create a cliff.
Commission due
$1,340
11.2% effective rate
Marginal tiers apply the higher rate only to sales above each threshold, so there is no cliff. Cheaper and less motivating than retroactive — affiliates chasing a retroactive tier push considerably harder near the boundary.
How the Commission Tier Calculator works
Retroactive tiers apply the higher rate to everything once the threshold is crossed, which motivates harder and costs more — the jump at the boundary can exceed the extra sales that caused it. Marginal tiers have no cliff and less pull.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference between marginal and retroactive tiers?
Marginal applies the higher rate only to sales above each threshold. Retroactive applies it to everything once the threshold is reached, creating a step change in commission.
Which should I use?
Marginal is cheaper and safer; retroactive motivates harder near the boundary. If you use retroactive, check the step size — a large jump can cost more than the incremental sales are worth.
Where should thresholds sit?
Above what most affiliates currently achieve, within reach of the good ones. A threshold nobody crosses is a rate card with extra steps.
Should tiers reset?
Monthly or quarterly resets keep the incentive live. Annual or lifetime tiers reward past performance rather than current effort.