Sub-Affiliate

A sub-affiliate is an affiliate who joins a program through the referral of an existing affiliate (the parent). The parent affiliate earns an override commission - typically 5-15% - on the earnings generated by their recruited sub-affiliates. This creates a multi-tier network where the parent benefits from the traffic and conversions driven by affiliates they brought into the program. The concept is similar to the Sub-IB structure in the Forex industry.

Sub-affiliate programs offer clear benefits for operators and affiliates alike. For operators, they expand program reach through existing affiliates' networks without additional recruitment cost or effort. For affiliates, recruiting sub-affiliates creates a source of passive income on top of their direct earnings. However, there are risks: quality control tends to dilute at each tier, as the operator has less direct oversight of sub-affiliates' traffic sources and methods. Qualification rules and affiliate fraud detection become important safeguards in multi-tier programs.

Commission calculation in multi-tier structures adds complexity to program management. Override commissions stack on top of direct CPA or RevShare payouts, meaning the operator pays both the sub-affiliate's commission and the parent's override. More complex programs may have three or more tiers, with each level earning a decreasing percentage. Operators must carefully configure tier depths, override percentages, and total payout caps to ensure the overall payout model remains sustainable.