Powerful and easy to use campaign and affiliate management tools are fundamental for networks and advertisers in the performance marketing space. These assets are likely the main reason a company will choose to license a tracking and analytics software rather than build an in-house platform. SaaS-based solutions must provide flexibility in campaign setup regarding affiliate payouts to advertisers and networks as they try to meet the needs of their affiliates and offer a program that is enticing and supplies a competitive edge against other networks. Volume-Based Tiers are one example of how to manage Affiliate Campaign payouts in a flexible and automated way.
For example, if Network A is able to provide a tiered payout structure to affiliates that will increase the CPA payout as conversion thresholds are met (e.g. conversions 1-50=$15 CPA, conversions 51-100=$20 CPA, conversions 101 and above=$25 CPA) and Network B only offers a static $17 CPA, affiliates will be much more likely to sign an Insert Order (IO) with Network A rather than Network B.
Not only does the unique payout structure of Network A provide affiliates with an incentive to drive more traffic to the campaign but it also gives Network A the ability to better control costs and margins by capping rates at predetermined thresholds. This kind of campaign management tool also provides automation for the network or advertiser and its affiliate managers by eliminating the need for manually turning off and on campaigns, changing payouts mid-campaign run or performing month-end payout adjustments based off of traffic volumes.
CAKE recently released Volume-Based Tiers to help manage payouts that are available on any Offer and Campaign. This feature utilizes Offer Contracts to pre-set payout ranges and run alongside traffic caps such as clicks and conversions to redirect to the next payout tier Offer Contract when the predetermined threshold is met. Based on these predetermined mappings, CAKE begins assigning the updated payout amount for the clicks or conversions that are recorded next.
For more information on how to setup Volume-Based Tiers within your CAKE instance, please visit the Knowledge Base article or contact your designated Client Success Manager for additional details and assistance.