Tech Talk: Attribution and Commissioning a Sale

I can geek out on this stuff all day.

I love talking about the technical aspects of how ReferTrack works, and I love when clients realize how powerful its architecture is and how it can be easily applied to their desired referral marketing strategy.

So today, I want to share with you the tech steps of how a referred visitor becomes a new customer and the transaction is recorded and how the commission is calculated, and all that fun stuff!

How ReferTrack Calculates Commissions for Referred Sales

Understanding how ReferTrack calculates commissions can be complex. Here’s a step-by-step breakdown to make it easier to understand:

1. Starting with an Action

An action can be either a sale or a lead. Each action has:

  • A default commission rate.
  • A default commission amount if it’s a flat fee.

2. Affiliate Permissions

When an affiliate joins the program:

  • They are granted permissions associated with specific actions.
  • These permissions make the affiliate eligible to receive commissions for referred sales.

Affiliates can also have custom commission rates for actions, which override the default rate.

3. Referring a Sale

When an affiliate refers a sale, the attribution process begins:

  1. Coupon Code or Lifetime ID Check:
  • First, ReferTrack checks if there is a coupon code or lifetime ID that overrides attribution.
  1. Session Variables and Cookies:
  • If no override exists, it looks at session variables or first-party cookies for that visitor.
  • ReferTrack identifies the visitor ID and all affiliate IDs associated with the customer.
  1. Single Affiliate Attribution:
  • If only one affiliate is associated with the customer, ReferTrack:
    • Identifies the action ID and affiliate ID.
    • Determines the commission rate for that affiliate and action.
    • Applies the commission rate to the transaction.
    • Marks the transaction as pending until approved by the merchant (either manually or automatically).
  1. Multiple Affiliate Attribution:
  • If multiple affiliates are associated with the transaction, ReferTrack:
    • Uses attribution rules to determine which affiliate gets the attribution.
    • Follows the same steps to calculate the commission amount for that transaction.

4. Special Use Cases for Actions

Actions can be used for:

  • Separate Websites: Unique reporting for different websites owned by the merchant.
  • Different Product Lines: Different commission rates for various product lines.
  • Private Rewards: Special rewards for specific affiliate partners.

5. Transaction History Reports

In the transaction history reports:

  • Affiliates can see all transactions related to the actions they have access to.
  • By default, all provided actions are reported.
  • Affiliates can filter transactions to report on a per-action basis.

Summary of the Process

  1. Action: Defined as a sale or lead with a default commission.
  2. Affiliate Permissions: Affiliates are given access to actions and may have custom commission rates.
  3. Referral Attribution:
  • Check for coupon codes or lifetime IDs.
  • Use session variables or cookies to identify visitor and affiliate IDs.
  • Apply the commission rate and mark the transaction as pending.
  • Use attribution rules if multiple affiliates are involved.
  1. Special Reporting: Actions can differentiate between websites, product lines, or affiliate rewards.
  2. Reports: Affiliates can see and filter transaction reports.

Certainly! Here’s a description of the process as a flowchart, along with a text representation of the flowchart for clarity.

Text Representation of the Flowchart

  1. Start
  • Action
    • Sale or Lead
    • Default Commission Rate or Flat Fee
  1. Affiliate Permissions
  • Affiliates given access to actions
  • Custom commission rates possible
  1. Referral Process Begins
  • Check for Coupon Code or Lifetime ID
    • If exists: Use this for attribution
    • If not: Proceed to next step
  1. Check Session Variables/Cookies
  • Identify Visitor ID
  • Identify all associated Affiliate IDs
  1. Single Affiliate Identified?
  • Yes:
    • Determine action ID
    • Determine affiliate ID
    • Apply custom commission rate if exists
    • Mark transaction as pending
    • Pending Approval
    • Manually by Merchant
    • Automatically (Date/System Notification)
  • No: Proceed to next step
  1. Multiple Affiliates Identified
  • Use attribution rules to determine primary affiliate
  • Follow steps for single affiliate to apply commission rate and mark as pending
  1. Special Use Cases for Actions
  • Separate Website Reporting
  • Different Product Lines
  • Private Rewards for Affiliates
  1. Transaction History Reports
  • Affiliates view all transactions related to their actions
  • Option to filter and report on specific actions
  1. End

Flowchart Diagram

+----------------------+
|       Start          |
+----------+-----------+
           |
           v
+----------------------+
|       Action         |
| - Sale or Lead       |
| - Default Commission |
+----------+-----------+
           |
           v
+----------------------+
| Affiliate Permissions|
| - Access to actions  |
| - Custom commission  |
+----------+-----------+
           |
           v
+----------------------+
| Referral Process     |
| Begins               |
+----------+-----------+
           |
           v
+----------------------+
| Check Coupon Code or |
| Lifetime ID Exists?  |
+----------+-----------+
| Yes                No|
|   |                 |
|   v                 v
+---------+       +----------------+
| Override|       | Session Variables|
| Applied|       | and Cookies     |
+---------+       +----------------+
                      |
                      v
+----------------------+               
| Identify Visitor ID  |
| Identify Affiliate IDs|
+----------+-----------+
           |
           v
+----------------------+
| Single Affiliate?    |
+------+---------------+
| Yes                No|
|   |                 |
|   v                 v
+---------+       +----------------+
| Determine|       | Multiple       |
| Commission|      | Affiliates     |
| Pending  |       +----------------+
| Approval |              |
| - Manual |              |
| - Auto   |              |
+---------+              |
                         |
                         v
                +----------------------+
                | Use Attribution Rules |
                +----------------------+
                         |
                         v
                 +----------------------+
                 | Determine Commission |
                 | Pending Approval     |
                 | - Manual             |
                 | - Auto               |
                 +----------------------+
                         |
                         v
             +------------------------+
             | Special Use Cases      |
             | - Separate Websites    |
             | - Different Product    |
             | - Private Rewards      |
             +------------------------+
                         |
                         v
             +------------------------+
             | Transaction History    |
             | Reports                |
             | - View all Actions     |
             | - Filter by Actions    |
             +------------------------+
                         |
                         v
                     +------+
                     | End  |
                     +------+

This textual flowchart breaks down each step involved in the commission calculation process, providing a clear, sequential flow of how ReferTrack handles referrals, attributions, and commission rates.