How to set up new tiers for my referral program

Tiers will allow you to define the bonus value to give to an advocate once he has generated a qualified referral/bonus. You must at least have 1 tier on your referral program, and you can have multiple tiers to make your referral program more attractive to your customers.  


How does it work?

On the tier incentive model, every time a referral converts (completes a purchase or a particular action on your system) the advocate (referrer) receives a bonus. The following image shows how this model work.



As you can see in the image above, when Referral 1 converts, the advocate receives a bonus. Please see an example here of how to set up multiple tiers

Example of tiers incentive model

Let's say that you have the following referral program campaign:  'Refer a friend and get $5 when your friends complete a purchase'.  And that John refers Matt. Matt signs up on your website and completes a purchase.


In this scenario, John is the advocate, and Matt is the referral. When Matt completes a purchase, John receives a $5 bonus. This is a classic 1 tier campaign: 1 +  referrals = $5.



Example of a refer a friend incentive model


Where do I set up new tiers?

To set up a new tier in Genius Referrals go to your account, click to edit your campaign, go to the 'Tiers' tab and click on the 'New tier' button.


Finding your refer a friend marketing campaign



Tiers Types

When setting up a new tier, the first thing to configure is the type. Tiers are based on the total of referrals the advocate has generated or the total of bonuses the advocate has received.

Tier Type: Referral

Use the tier type referrals when you want to give to an advocate a bonus based on the total of referrals he has generated.

Example of tier type: referral

Let's say that you have the following referral program campaign:  'Advocate receives a bonus per each qualified referral'.  And that John refers Matt. Matt signs up on your website and completes a purchase.

In this scenario, John is the advocate, and Matt is the referral. When Matt completes a purchase, John receives a bonus.


new tier type: referrals


Tier Type: Bonuses

Use the tier type bonuses when you want to give to an advocate a bonus based on the total of bonuses he has received or can received.

Example of tier type: bonuses

Let's say that you have the following referral program campaign:  'Advocate receives $1500 in total per each qualified referral. Once referral completes the first group of tasks, advocate receives $500 and once the referral completes the second group of tasks, advocate receives $1000'.  And that John refers Matt. Matt signs up on your website and start using your services.
In this scenario, John is the advocate, and Matt is the referral. When Matt completes the first group of tasks, John receives a $500 bonus and then when Matt completes the second group of tasks, John receives a $1000 bonus.

example of tier type with bonuses

Bonus Calculation

Once you have defined the tier type, you must decide how to calculate the bonus to give to the advocate. The calculation can be based on a fixed or a percentage amount.

Fixed Type

Use the fixed calculation method when you want to give to an advocate a fixed bonus value per each qualified referral/bonus.

Example of bonus calculation type: fixed

Let's say that you have the following referral program campaign:  'Advocate receives $5 per each qualified referral'.  And that John refers Matt. Matt signs up on your website and completes a purchase.

In this scenario, John is the advocate, and Matt is the referral. When Matt completes a purchase, John receives a $5 bonus.

example of bonus calculation type: fixed

Percentage Type

Use the percentage calculation method, when you want to give to an advocate a variable bonus value that depends on the total amount of money that the referral has spent in your system.

Example of bonus calculation type: percentage

Let's say that you have the following referral program campaign:  'Advocate receives 10% of the referral's purchase per each qualified referral'.  And that John refers Matt. Matt signs up on your website and completes a purchase.

In this scenario, John is the advocate, and Matt is the referral. When Matt completes a $100 purchase, John receives a $10 bonus.


example of bonus calculation type: percentage

Date Range

Additionally, you can add to a tier a date range restriction to limit the tier to a time period.

Example of date range restriction

Let's say that you have the following referral program campaign:  'Advocate receives $5 per 3 or more qualified referrals generated in the last 7 days'.  And that John refers Matt. Matt signs up on your website and completes a purchase.

In this scenario, John is the advocate, and Matt is the referral. John receives $5 every time he generates 3 or more referrals in the last 7 days.


example of tier with date range rule

Creating Multiple Tiers to Make your Advocacy Program more Attractive

To get the best of your referral program, we strongly recommend using multiple tiers to encourage your advocates to share more your products with friends, family and colleagues. The idea is to reward the advocates in accordance with the amount of bonuses/referrals they generate.

The following image shows a classic example of a multi-tier campaign.

example of tiers incentive model for your refer a friend program

As you can see in the image above, we have three tiers:

  • On tier 1: the advocate receives $5 per referral for the first 5 referrals. In total, he will receive $25 ($5 * 5) on this tier. Once he generates the 6th referral, he will be processed using tier 2 rules.
  • On tier 2: the advocate receives $8 per referral from the 6th referral. In total, he will receive $32 ($8 * 4) on this tier. Once he generates the 10th referral, he will be processed using the tier 3 rules.
  • On tier 3: the advocate receives $10 per referral. As there is no limit on the total amount of bonuses the advocate can receive on this tier, he will receive $10 every time he generates a new referral.

Setting up this campaign on Genius Referral

The previous campaign will look like the following image.

setting up a tier campaign for your refer and earn program


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