Tiered commissions, creators

Summary

What are tiered commissions on TikTok Shop and how do they work for sellers and creators?

  • Tiered commissions offer a range of commission rates based on sales volume for select products, allowing creators to earn higher payouts as they drive more orders through their content.
  • As creators hit predefined sales milestones, their commission rate automatically increases without any extra action needed, incentivizing higher sales performance.

How can sellers or creators identify and track products with tiered commissions on TikTok Shop?

  • Products with tiered commissions display a commission range instead of a fixed rate, signaling the opportunity for increased earnings based on sales volume.
  • Creators can monitor their sales progress and commission tier status through the Creator tools dashboard to stay motivated and informed about their earnings potential.

Are there any limitations or conditions regarding changes in commission rates with tiered commissions?

  • Commission rates can only increase as sales milestones are reached; rates do not decrease once set, and order thresholds remain fixed after activation.
  • Only orders generated after the tiered commission setup count toward advancing to higher commission tiers, ensuring fairness in tracking sales volume.

What should creators understand about the estimated commission displayed for tiered commission products?

  • The "Est. commission" shown is an estimate and may not reflect final earnings due to factors like refunds or pending sales volume thresholds.
  • Until the sales volume meets the next tier threshold, the estimate reflects the lower commission rate, so actual earnings may increase as milestones are reached.

Tiered commissions

This is an beta experience, available for select products. Maximize your earnings. With Tiered Commissions, your content directly impacts your payouts. Increased sales can lead to higher commissions.
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How it works:

  1. As you browse products available for collaboration on TikTok Shop, you will notice some now show a range for their commission, instead of a single fixed rate. This range signals that tiered commissions are available.
  2. When you click on a product with tiered commissions, you'll see the specific order volumes that unlocks a different commission rates. No guesswork, just clear milestones to your next big payday.
  3. Once you start promoting a product with tiered commissions and shoppers begin making purchases through your content, we'll track your accumulated order volume for that product.
  4. As your total sales for that product hit the predefined order thresholds, your commission rate will automatically change. You don't need to do anything extra; we handle the magic behind the scenes.

Tips:

  • Look for the range! Always check the commission display for products. If you see a range, you know there's an opportunity for tiered earnings.
  • Track your progress: Keep an eye on your sales data within your Creator tools. Seeing how close you are to the next tier can be a huge motivator.

FAQs:

  • How do I know if a product offers tiered commissions?
You'll see a commission range displayed for the product instead of a single fixed rate.
  • Do I need to do anything special to change commission tiers?
Nope! Just keep creating amazing content and driving sales. Your commission rate will automatically adjust upwards as you reach the sales milestones set by the seller.
  • Can the commission rates go down?
Once set, commission rates for existing tiers can only increase and order thresholds cannot be changed once active. So, your earning potential generally only goes up! Keep in mind that some sellers may offer a higher or lower commission rate once you hit a certain sales volume.
  • If I've already hit the order threshold, do I automatically get the new commission tier?
Yes, there's no additional action required on your side. However, only the orders that were generated after the seller set up the tiered commission will count towards meeting the next commission tier.
  • Is "Est. commission" my final commission earnings?
No. This is an estimate and does not take into account potential refunds. If you are under the tiered order threshold, the "Est. commission" will display the lower commission tier until the order threshold is reached.