
Multi-tier commission
Multi-tier commission is a compensation structure where a salesperson earns not only a commission on their own sales but also a percentage of the sales generated by colleagues they recruit or influence. This creates multiple levels of earning opportunities, incentivizing both direct sales and team expansion. For example, if you recruit someone who starts selling, you earn a commission from their sales, and if they recruit others, you may earn a percentage from their sales as well. This approach encourages building a sales network, with rewards growing as your team expands.