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Tiers

Noun

In the context of B2B partnerships, tiers, also known as commission tiers, are structured levels within a partner program that offer varying compensation and benefits based on a partner's performance and engagement.

Each tier typically has specific requirements or criteria that partners must meet to gain access to the associated commissions, creating a clear path for progression and incentivizing partners to drive greater value for both themselves and the company. This means that lower tiers have attainable goals for new partners to encourage engagement, while higher tiers help retain your best performing partners.

By offering a graduated system of rewards, companies can encourage partners to invest more time and resources into their program and drive more sales. They also help to foster a sense of loyalty and commitment among partners, as they can see a tangible path for growth and increased earning potential within the program.

Example:

A SaaS company implemented a tiered partner program with three levels: Silver, Gold, and Platinum. Each tier offered increasing levels of support, marketing resources, and commission rates based on the partner's sales performance. This tiered structure successfully motivated partners to drive more sales and achieve higher tiers, resulting in a significant boost in revenue for the company.

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